five-bullish-answers

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INCOME

EATON VANCE

Looking beyond traditional sources of yield

Scott Page, CFA Co-Director of Floating-Rate Loans Portfolio Manager Craig Russ Co-Director of Floating-Rate Loans Portfolio Manager Christopher Remington Institutional Portfolio Manager Product & Portfolio Strategy

MAY 2015 TIMELY THINKING

Floating-rate loans: 5 bullish signals behind 5 bearish questions SUMMARY

Why loans now?

Why we believe five common concerns… 1. “What happened to my return in 2014?”

More than half of advisors surveyed (53%) say clients concerned about rising rates are now more likely to consider floating-rate investments.* See page 3 for how floating-rate loans can help. *Based on results from the Eaton Vance April 2015 Advisor Top-of-Mind Index.

2. “Why do I need loans? It doesn’t look like rates are going up any time soon.” 3. “I keep hearing about crazy leverage in deals.” 4. “I’m worried retail outflows will cause market disruptions.” 5. “I’ve heard that ‘covenant-lite’ loans can weaken credit quality.”

…support a bullish position for floating-rate loans.

At Eaton Vance, we value independent thinking. In our experience, clients benefit from a range of distinctive, strongly argued perspectives. That’s why we encourage our independent investment teams and strategists to share their views on pressing issues—even when they run counter to conventional wisdom or the opinions of other investment managers. Timely Thinking. Timeless Values.

Not FDIC Insured | Not Bank Guaranteed | May Lose Value


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