Beyond Bulls & Bears

Who Said the Rules of the Game Could Change Because LIBOR’s Going Away?
Fixed Income

Who Said the Rules of the Game Could Change Because LIBOR’s Going Away?

There’s been a lot of discussion in the fixed income world about the end of the London Interbank Offered Rate (LIBOR) and what might replace it. But what hasn’t been as widely discussed is an important consequence for investors in this space: changes to LIBOR language in new-issue and amended credit agreements—particularly how these changes are implemented. Mark Boyadjian, director of our Floating Rate Debt Group, and Reema Agarwal, vice president and director of research, explain.

Preparing for a Possible Post-LIBOR World
Perspectives

Preparing for a Possible Post-LIBOR World

“We believe a change from LIBOR to an alternative benchmark would be significant. Global lenders use LIBOR to set interest rates for a variety of financial products, including interest-rate swaps, student loans, mortgages, collateralized loan obligations (CLOs) and floating-rate loans. A change would require amendments to contracts and credit agreements, underlying trillions of dollars in global assets.” – Franklin Templeton Fixed Income Group’s Mark Boyadjian and Reema Agarwal

Why Higher Interest Rates Could Draw Yield-Seekers to Leveraged Loans
Fixed Income

Why Higher Interest Rates Could Draw Yield-Seekers to Leveraged Loans

We believe that having a possible deluge of perhaps unqualified borrowers flood the market will make fundamental and independent research even more important for potential investors in this asset class.

Rising Rates and the Case for Leveraged Loans

Rising Rates and the Case for Leveraged Loans

For certain investors—in particular pension funds and insurance companies that tend to follow a more cautious investment strategy—the extended period of record or near-record low US interest rates has been a thorn in the side.