Don’t Bank On Bank Loans In 2023

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By AJ Rivers, CFA, FRM, CAIA and Matthew Sheridan, CFA

As bond yields rose in 2022, traders sought refuge in high-yield financial institution loans, whose floating coupons are sometimes heralded as an antidote to rising charges. However with situations shaping up

Bank Loans Have Underperformed During Recessions

Bank Loans’ Share of Lower-Rated Debt Has Risen over Time