Senior loans and CLOs: Asset classes amid rising rates?

Amid positive market fundamentals, an enhanced regulatory framework and the prospect of higher interest rates in Europe and the US senior secured loans and collateralised loan obligations (CLO) are emerging as viable alternative investment opportunities, according to AXA Investment Managers (AXA IM). The prolonged backdrop of low yields has spurred investors to seek greater diversification via non-traditional credit asset classes, which aim to provide potentially attractive premiu…