Bachelor of Science, Master of Business Administration, Certified Public Accountant
US senior secured loans provide an alternative to traditional fixed-interest and high-yield bonds, offering the potential for consistent, inflation-hedged income independent of the market cycle.
Our scale and experience give us a distinct perspective from which to build diversified senior loan portfolios on an advantageous cost basis. Our long relationships and reputation also provide us a privileged access to the senior secured loans market, potentially enhancing client outcomes.
At the top of the capital structure, senior secured loans are the highest priority to be repaid in the event of default or bankruptcy.
With relatively low volatility and correlation of investment returns versus traditional asset classes, senior loans offer potential portfolio diversification benefits.
We are one of the largest global bank loan managers, with the scale to obtain preferred allocations on selected new issues.
The strategy aims to provide a high level of current income, consistent with the preservation of capital, by investing primarily in adjustable-rate senior loans whose interest rates float at a spread above Libor and reset on average approximately every 60 days.
Invesco’s senior loan investment process is based on a disciplined, fundamental approach to investing. Our analysts are structured by industry specialization and have a deep understanding of the companies that operate in the senior loan space.
In addition to credit selection, the process is based on active portfolio management and is designed to optimize portfolio returns while minimizing downside credit risk investing through a full credit cycle.
The process is based on fundamental, dedicated bottom-up credit research resulting in two internal ratings:
Depth and breadth of resources
Market presence and scale
Proven credit process and proprietary tools
Private side investor
Invesco’s Senior Secured Management team has gained a distinctive perspective having managed loan assets since 1989 under a consistent approach executed through a variety of vehicles and strategies over multiple market cycles.
Experts in the loan asset class, the team has 88 dedicated and experienced members with 30 investment professionals averaging 18 years’ experience.
The investment team is led by a six-person Investment Committee, which has an average of more than 28 years’ industry experience and an average of 18 years at Invesco.