M&G promotes advantages ofhigh yield loans

M&G has suggested investors look to secured high`yield loans to protect themselves from falling yiel...

M&G has suggested investors look to secured high`yield loans to protect themselves from falling yields from corporate and high yield bonds, as it prepares to launch a fund for this asset class. The group's managers have been using the asset class, typically utilised in management and leveraged buyout deals, in its life funds, having first entered the market in 1999. The product is relatively secure as it ranks above high yield and mezzanine debt and equities in a company's capital structure and typically has a floating coupon. As Investment Week revealed in December, M&G is considering t...