Senior Secured Floating Rate Loan's for Income
Senior Secured Floating Rate Loan’s for Income
Floating rate loans are senior secured and collateralized. Therefore, if a borrower should default on the loan, the lender is the first in line to get paid off and is entitled to the collateral that was pledged during the loans origination. The average mutual funds historical recovery rates have been around the 70% to 80% range; however, some of the top hedge funds have achieved much greater recovery rates. Floating rate loan's typically reset their interest payments every 60 to 90 days based on a margin over LIBOR; hence, when interest rates increase so does the interest payment. For investors that seek income, but are concerned with default rate risk and interest rate risk, floating rate loans as part of one's fixed income allocation might make sense.
Wednesday, November 4th
10:00 am to 11:30 am
Complimentary (Reservations required)
Please call 239-949-38000 or visit www.thecommonsclub.com
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