Senior loans can be an efficient source of attractive risk-adjusted returns in a low-yielding fixed income environment.
Our loan strategies aim to deliver strong risk-adjusted returns by identifying high quality syndicated loans. Our investment team combines strategic positioning with fundamental credit analysis. Using senior loans can offer greater capital security and less volatility than using traditional fixed income investments.
Insulation from interest rate risk: the floating-rate nature of the investments can mitigate the impact of future interest rate rises.
Defensive strategy: by investing in loans, which are usually positioned at a more senior level than bonds, investors can benefit from higher levels of collateral protection and stronger covenants, minimizing credit risk.
Diversification: these strategies can invest in a wide range of assets from worldwide issuers.
Specialist team: loans are a key alpha generator across fixed income and form an integral part of our flagship strategies. Specialist teams manage Insight’s loan exposures to leveraged loans, property loans, private placements, collateralized loan obligations and distressed debt.
All data as of March 31, 2019. Assets under management (AUM) are represented by the value of cash securities and other economic exposures, and are calculated on a gross notional basis.*
Fixed income snapshot desk views
Do the ongoing political risks surrounding Brexit and US/China trade talks warrant further caution in rates and credit markets? Catch up on our monthly fixed income views.
US pension market: a statistical and qualitative review of Q1 2019 and investment outlook
After the tumultuous end to 2018, a year in which an unusually broad range of asset classes recorded negative returns, policymakers appear to be in the process of reassessing their position.
US pension market: Review of trends in US pension and financial markets in Q4 2018 and outlook
Pension Funded Status: For many, the gains realized through most of 2018 were wiped out over December with levels flat or slightly down for the year
Sovereigns and sustainability
Fixed income investors are sharpening their focus on countries' sustainability risks. We believe effective sovereign debt investment requires in-depth analysis of ESG matters, and our proprietary model aims to help us better understand ESG risks at the country level across our portfolios.
US pension market: Review of trends in US pension and financial markets in Q3 2018 and outlook
Pension fund liability hedging demand for stripped Treasury bonds continues to run at elevated levels, boosted by improving funded levels and a surge in contributions before the September 15 deadline for higher tax deduction savings.
US subprime auto loans: systemic risk or contained weakness?
US auto loan markets have attracted recent attention due to rising delinquencies. However, we believe there is little potential for systemic risk in the structured credit and private lending markets, and we expect market weakness to be contained.
US pension market: Review of trends in US pension and financial markets in Q2 2018 and outlook
The second quarter was dominated by political events, with the risks of a global trade war growing through the quarter. We examine these events and how they impact the outlook for pension funds.
*Insight North America (INA) is part of “Insight” or “Insight Investment”, the corporate brand for certain asset management companies operated by Insight Investment Management Limited including, among others, Insight Investment Management (Global) Limited and Insight Investment International Limited. Advisory services referenced herein are available in the US only through INA. Figures shown in USD. FX rates as per WM Reuters 4pm spot rates.
Includes employees of Insight North America LLC (INA) and its affiliates, which provide asset management services as part of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML).
Please note: the value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.
Insight North America LLC (INA) is a registered investment adviser under the Investment Advisers Act of 1940 and regulated by the US Securities and Exchange Commission. INA is part of “Insight” or “Insight Investment”, the corporate brand for certain asset management companies operated by Insight Investment Management Limited including, among others, Insight Investment Management (Global) Limited and Insight Investment International Limited. Insight’s assets under management are represented by the value of cash securities and other economic exposures, and are calculated on a gross notional basis. Advisory services referenced herein are available in the US only through INA.
The views herein represent the opinions of Insight and are subject to change based on subsequent developments. They are not intended as investment advice or to predict or depict the performance of any investment. The material contained herein is not intended to provide, and should not be relied on for, investment, accounting or legal tax advice. Further, this material does not constitute a recommendation to buy, sell or hold any security. No offer or solicitation for the sale of any security or financial instrument is made hereby.