Senior Portfolio Manager
Managing Director, Head of Leveraged Finance
Seix Investment Advisors LLC
In a conversation with Virtus’ Chief Market Strategist Joe Terranova, Seix’s Head of Leveraged Finance George Goudelias addresses common questions about the loan market and where he sees potential opportunities.
• Distinctions between collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs)
• The low interest rate environment and its potential impact on leveraged loan performance
• Valuations and issuance
• Portfolio positioning
IMPORTANT RISK CONSIDERATIONS
Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities. Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value, and have longer settlement times than other investments, which can make loans relatively illiquid at times. High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities. Market Volatility: Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund’s portfolio manager(s) to invest the fund’s assets as intended. Prospectus: For additional information on risks, please see the fund’s prospectus.
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