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Virtus Viewpoints - Q4 Seix Leveraged Finance

Resilience Abounds

For 4Q, the JP Morgan Leveraged Loan Index returned +3.78%, bringing the 2020 return to +3.19%, but loans drew more attention in early January as rates rose. The ICE BofA US High Yield Index had a 6.48% return. The confluence of election results and COVID vaccine announcements set the stage for a powerful rally, led by companies with strong business models and a significant liquidity runway to deal with the pandemic.

The ICE BofA US High Yield Index had a 6.48% return. In terms of credit ratings, BB’s gained 5.74%, single B's +5.71%, CCC's +12.19%, and distressed +25.19% for the quarter. The confluence of election results and COVID vaccine announcements set the stage for a powerful rally, led by companies with strong business models and a significant liquidity runway to deal with the pandemic.

Cover Image: Seix Market Review - Leveraged Finance

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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.

All investments carry a certain degree of risk, including possible loss of principal.

Past performance is not indicative of future results.

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