T. Rowe Price: Volatility brings opportunities in floating rate notes

Continued volatility in the floating rate note market over the next 12 months offers active managers ...

Continued volatility in the floating rate note market over the next 12 months offers active managers equity-like returns, T. Rowe Price's Justin Gerbereux says. Gerbereux, Floating Rate Bank Loan Strategy portfolio manager, says while the longer-term future for the bank loan market is hard to predict, it will almost certainly feature lower leverage ratios, more conservative capital requirements and a higher price premium relative to yield. "Over the next 12 to 24 months however, the loan market is likely to remain volatile as investors react to economic uncertainty," he says. "During thi...