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CLOs: An Attractive Floating-rate Option in a Rising Rate Environment
In a rising rate environment, fixed income investors need a floating rate option. CLOs may provide the flexibility investors need to respond and benefit from potential rate hikes.
Join our Janus Henderson experts to discuss the topics:
- While most investors feel that rising interest rates are bad for bonds, the opposite is may be true with floating-rate bonds – like CLOs
- When absolute yield levels across many fixed income markets are low, the yields on CLOs can look attractive. CLOs have a history of seeing capital appreciation when the Fed is raising rates – as they are expected to do in the year ahead.
- Offering lower volatility, higher credit-quality and less sensitivity to any rise in interest rates, CLOs may help investors diversify a traditional fixed income portfolio in 2022 and beyond.