The objective of the Defensive Floating Rate Income strategy is to provide high current income and benefit from actual or expected rising rates. The strategy has consistently generated alpha over the broad S&P/LSTA Loan Index and more defensive S&P/LSTA BB Rated Loan Index with durability through down markets.
Differentiated profile characteristics of the Defensive Floating Rate Income strategy:
- Focus on Single-B and above credit quality rated loans with emphasis on first-lien loans with strong covenants
- Downside sell discipline with detailed covenant review, including change of control
- Identify relative value opportunities and upgrade candidates