perspectives

09 Oct 2015 White Paper – What Loan Investors Need to Know About LIBOR Floors

Most loans issued in the aftermath of the financial crisis feature “LIBOR floors” that will impact how they react once the Federal Reserve begins to hike interest rates. Affecting approximately 92% of the loans in the S&P/LSTA Leveraged Loan Index, this White Paper looks at how LIBOR floors have, at least for the time being, modified the floating rate mechanism unique to senior loans. If loan coupons won't immediately begin to float upward with the Fed's first few rate hikes, what then could happen to the market price of loans, and ultimately, yields when the tightening cycle begins?
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07 Oct 2015 White Paper – Securitised Credit

Years removed from the credit crisis, the securitised credit markets continue to trade at yield premiums relative to competing fixed income asset classes. This is despite a fundamental backdrop that reflects a firmly entrenched economic recovery in the U.S. and a mix of buyers that has consistently been tilted heavily toward those comfortable with the risk inherent in this multi-faceted, opportunity-rich asset class. This paper introduces the securitised asset class, focusing on the evolution of the market as a whole as well as the key characteristics of its major subsectors.
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22 Sep 2015 Fixed Income Perspectives – Wake Me Up When September Ends

Summer has come and passed. Can zero interest rates really last? Seven years has gone so fast. Wake me up when September ends. Green Day fan or no, an investor could be forgiven for wanting to sleep through the volatility that has emerged over the past couple of months in anticipation of the FOMC’s pivotal September 16–17 policy meeting. 

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18 Sep 2015 Fed Holds Steady

Citing concerns about global developments, the Fed maintained its zero interest rate policy following its latest policy meeting. Voya Investment Management's investment leaders provide their thoughts on the the Fed's announcement.

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