Loan market falls an anomaly - Neuberger Berman MD

Falls in the multi-billion dollar US loan market during the summer turmoil have been labelled an anomaly by Neuberger Berman's managing director Joe Lynch.

Lynch, whose firm recently launched the Neuberger Berman Global Floating Rate Income fund, said loan values had fallen further than high yield, a move that was unexpected and leaves the loan market attractively priced. He said: “It was an anomaly. It was sparked by macro concerns but we think it was driven by technical conditions.” Bank loans are generally rated sub-investment grade and are issued as a result of corporate action, with the US market worth $525bn. Lynch said retail investors have recently piled into loans but deteriorating economic news in the summer spooked markets ...