Bank Loans: New Opportunity Created by the Ongoing Credit Crunch

With the continuing credit crunch that was created by the sub-prime mortgage market, many other fixed-income strategies have experienced large dislocations -- due more in part to technical factors rather than fundamental factors.  Although the economy is slowing and may be moving toward, or already in, a recession, the dislocations have created pockets of opportunities in certain sectors of the credit markets.  Senior secured bank loans are just one example of those current opportunities.  The attached paper (click here) published by Standish describes this sub-asset class and the current investment opportunity.

Steven Karsh
Director of Research