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Video: 2019 outlook for floating-rate loans

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      By Craig P. Russ, Co-Director of Floating-Rate Loans, Eaton Vance Management

      Boston - Floating-rate loans as measured by the S&P/LSTA Leveraged Loan Index posted a positive total return in 2018, so they provided a bit of a shelter from the storm in markets.

      In 2019, we think the floating-rate nature of the asset class will be advantaged in a rising interest-rate environment, which is largely expected for 2019. Also, loans are non-investment-grade credit, but they are senior in the capital structure, which may provide lower risk relative to other credits such as high-yield bonds.

      (Tap or click the image below to view the video.)

      Blog Image Russ 19 Outlook Jan 9

      Recently, there have been several negative media articles focusing on the increasing risk in floating-rate loans. We think that this narrative in the media is a bit overdone, and I explain why in the video above.