RBC BlueBay's Floating Rate Report examines the resilience and appeal of floating rate assets amidst uncertain rate-cut projections. Key insights include:
• Despite potential rate cuts, floating rate assets like leveraged loans offer attractive yields versus fixed-rate alternatives.
• Lower rates benefit floating rate debt issuers, improving cash flows and debt service ratios.
• Short-duration floating rate assets, such as CLOs and ABS, remain valuable given their spread advantages and ability to manage rate volatility.
For strategic insights and allocation recommendations in floating rate securities, read the full report.