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Home > Senior Loans

Senior Loans

Offering the potential for higher, risk-adjusted monthly income and a natural hedge against rising interest rates.

Senior loans are loans made to non-investment grade businesses to assist them with their financing needs. These loans are primarily originated by major financial institutions that syndicate the loans among a large number of banks and institutional investors.

The loans are structured as floating rate securities that can provide a natural hedge against rising interest rates. They are also typically secured by a first priority lien on a borrower's assets, resulting in historically higher recoveries than high yield corporate bonds.

Our approach

We apply an actively managed, ultra-short duration floating rate income strategy that invests primarily in privately syndicated, non-investment grade, secured senior loans. We target the top-tier non-investment-grade senior loans because they generally offer attractive yields, are typically secured by borrower assets, and are not subject to traditional interest rate risk. Using this strategy we aim to provide superior long-term risk-adjusted total returns with low volatility over a full market cycle.

Why ING?

• Highly diversified portfolio across issuers and sectors. 
• Utilises top-down analysis to target industries with strong operating momentum or improving credit conditions
• We avoid sectors prone to the clustering of defaults. 
• Fundamental credit analysis that includes independent credit research and relative value analysis. 
• A dedicated group of 27 investment professionals managing over US$10 billion in this strategy.  ING Senior Loan Group