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High-Yield Bank Loans: Look Before You Leap

In falling rate environments, loans have underperformed bonds dramatically—by about half a percent per month when Treasury bonds have posted positive returns. Of course, to be fair, the concern today is more about rising rates. But even in months when interest rates have risen, high-yield loan returns have still trailed high-yield bond returns.
-Ashish Shah, co-head of global credit investments, AllianceBernstein