06 Mar 2025
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Fixed income
Webinar - Higher for longer: Finding opportunities in US Senior Loans & CLOs
Sticky “last mile” inflation, better-than-expected U.S. economic growth and an increased likelihood of fiscal stimulus from the new U.S. administration have thrown a wrench into the Fed’s rate cutting cycle.
After kicking off its exit from restrictive rates in September with a surprise 50bps decrease and a median dot plot indicating 150bps of cuts through 2026, a string of robust data releases and political developments have forced the hand of the central bank. The latest consensus among FOMC members is for 100bps of cuts through end of 2026 and markets pricing just over one cut this year.
For investors in floating assets, this means higher income for longer. But is this too good to be true? Can borrowers continue to withstand higher interest costs? What are the opportunities and risks in this new economic paradigm? Watch our recent webinar recorded to discover what’s in store for investors in floating rate assets with a focus on senior loans and collateralized loan obligations.
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