Invesco Senior Secured Loans

A diversified portfolio

Investors are facing growing challenges characterised by a mix of overall compressed risk premiums, low-yielding perceived ‘safe-haven’ investments and increasing volatility. In this environment, it is challenging to sustain target returns.

In order to respond to these challenges as well as the growing size and increasing volatility of their liabilities, investors are looking to augment their existing portfolios with additional asset classes.

The Senior Secured Loans asset class’ combination of relatively attractive current income and low duration may offer these investors an appealing solution.

A growing focus on ESG

More and more investors are focused on Environmental, Social and Governance (ESG) criteria – also for bank loan portfolios.

To meet this demand, we have expanded our offering to include strategies that take ESG criteria into account in the investment process.

Invesco’s Senior Secured Management team has developed a proprietary, award winning, ESG rating framework where each new loan is independently measured for risk related to Environment, Social and Governance factors by the team's credit analysts.

The Senior Loans ESG strategies are Article 8 compliant as per the Sustainable Finance Disclosure Regulation.

Explore strategies

Latest insights

A Quick Guide: Senior Secured Loans

Kevin Petrovcik
Senior Client Portfolio Manager Senior Secured Loans

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Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. The strategy is particularly dependent on the analytical abilities of its investment manager on senior loans. Many senior loans are illiquid, meaning that the investors may not be able to sell them quickly at a fair price and/or that the redemptions may be delayed due to illiquidity of the senior loans. The market for illiquid securities is more volatile than the market for liquid securities. The market for senior loans could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior loans, like most other debt obligations, are subject to the risk of default. The market for senior loans remains less developed in Europe than in the U.S. Accordingly, and despite the development of this market in Europe, the European Senior Loans secondary market is usually not considered as liquid as in the U.S.

Important information

  • Data as at December 2020, unless otherwise stated. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. 

     

    For strategies not named as ESG, the ESG information has been provided for illustrative purposes only. Whilst the fund managers consider ESG aspects they are not bound by any specific ESG criteria and have the flexibility to invest across the ESG spectrum from best to worst in class unless otherwise stated in the legal offering documents.