A “Once-In-A-Generation” Investment?

Ashley O’Connor is an experienced equity and bond markets investor at Invesco.

Ashley joins Owen Rask on The Australian Investors Podcast to talk about Senior Secured Loans and why this strange but impressive market could be about to surprise to the upside.

• Can you describe the macroeconomic environment in two sentences?
• What is the best risk-adjusted asset class for accumulators over the next decade?
• What is the best risk-adjusted asset class for retirees over the next decade?
• We focus a lot on equities and public companies. But there’s a huge rumbling from private markets, and on both sides of the ledger (equity and debt). Can you describe how private markets work in Australia, in particular some of the inefficiencies between debt and equity in private markets and where you see opportunities?
• What are senior secured loans and how does an investor get exposure to them?
• Where it sits on the risk spectrum versus government bonds, equities, high yield, etc.
• Performance characteristics – asymmetry of risk (default) versus upside (yield), default rates, return profile over 20 years, industry and geographical exposures
• How to assess credit risk (e.g. common metrics, approaches to DD, etc.)
• Defaults and recoveries, risk-adjusted answers to outlook, etc.
• Where does SSL sit in a portfolio? What do they replace or complement?
• Deal flow is one of the most important factors for prospective investors in every asset class, how do you find new investment ideas? From relationships, research of referrals?
• Do credit ratings apply to SSL?
• Do you believe credit and these types of opportunities are going to become more abundant and available to self-directed investors?
• What’s one thing you believe about investing, business or life that few people would agree with you on?