Pity the poor loan sector.
It is a relatively defensive area of the market that has been able to keep distribution rates much more stable over the last decade compared to other corporate debt sectors.
Source: ADS Analytics LLC, TIINGO
And yet it has been unloved by investors over the past year - showing the second worst sector return.
Source: ADS Analytics LLC, TIINGO
We think the sector is facing challenges but the skepticism shown by investors is overdone - the following three funds screen well on a variety of metrics.
- Eaton Vance Senior Floating-Rate