This podcast episode discusses the potential impact of delayed or reduced Federal Reserve rate cuts on leveraged loans. Key takeaways are that if rates stay higher for longer, leveraged loans could benefit as they are floating rate and their yields rise with central bank policy rates. Leveraged loans are a high yielding, floating rate instrument that has advantages if rates stay higher for longer than expected. If inflation remains elevated, leveraged loans could be an attractive investment due to their high yield and floating rate structure.
