Leveraged Loans and High Yield:
Unprecedented Volatility; Unprecedented Opportunity
- The list of the most impacted sectors continues to grow, led by energy, retail, gaming, hospitality, and travel.
- Defensive industries such as cable and satellite and telecom underperformed the least for the quarter.
- As lending covenants are tripped, defaults are likely to increase, and a number of companies may be forced into restructuring.
- The volatility and sell-off has created a number of attractive potential opportunities for investors with sufficient liquidity.
The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.
Past performance is not indicative of future results.