Catalyst and Princeton Publish Floating Rate Bank Loan White Paper

Catalyst Capital Advisors and Princeton Advisory Group have published a white paper on the floating rate bank loan asset class. The white paper can be accessed here: A Guide to Floating Rate Bank Loans – An Attractive Investment for a Rising Interest Rate Environment.

Floating rate bank loans offer investors:

• Protection against rising interest rates
• Potential for high current income
• Low correlation to other asset classes

Factors to consider when deciding to invest in this asset class include:

• Intensive research offered by active management, which can reduce credit risk and improve portfolio yields
• Size of fund, as smaller bank loan issues that provide more attractive opportunities are not practically accessible to very large funds
• Recent bank loan issues/recently launched funds are more likely to hold most if not all of their portfolio in bank loans with LIBOR floors, which provide protection in the event interest rates drop