The Case for Investing in Floating Rate Bank Loans

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The Case for Investing in Floating Rate Bank Loans

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Matt McInerny, CFA Sara Strauch
JUN 21, 2021

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Given the current point in the economic cycle, MetLife Investment Management (MIM) sees value in floating rate bank loans as the economy expands rapidly. The growth in gross domestic product (GDP) is bringing the customary inflationary pressures along with expectations of rising interest rates. This underpins strong fundamentals in the Syndicated Loan1 market as evidenced by record collateralized loan obligation (CLO) issuance of $39 billion and strong inflows into loan mutual funds and ETFs to the tune of $13 billion through the first quarter of 2021.2