St. Aubin in the Wall Street Journal Talks Risky Borrowers & Rising Loan Costs

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Excluding a 2020 spike, the default rate for the past 12 months is the highest since 2014.

The strains come at a time when leveraged-loan funds have put up outsize performances. Investors had feared that rising rates would hurt risky borrowers, particularly if they spark a recession. Instead, a strong economy has helped issuers withstand rising interest costs while bonds with low fixed rates have tumbled, amplifying the advantage of floating-rate debt.

The thoughts and opinions expressed in the article are solely those of the person speaking as of 9/28/2023, and not necessarily those of Sierra and are provided for informational purposes only. Any opinion or estimate contained in this article is made on a general basis and is not to be relied upon by the reader as advice. The reader must make his/her own assessment of the relevance, accuracy, and adequacy of the information contained in this article, and make such independent investigations as he/she may consider necessary or appropriate for the purpose of such assessment.

0274-SI00XLAP 09282023

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