Floating rate loans are usually thought of as a way to add risk to portfolios – a move that may seem unappealing at first glance as risk assets took a beating in 2022.
However, many investors may not realize that floating rate loans can help moderate this volatility: along with an attractive risk premium, its protective characteristics may lessen rate risk and overall volatility compared with equities
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.
2659593