BlueBay High Income Loan Fund

ISIN
Key documents

    Objective

    The Fund's objective is to achieve returns in excess of 3-month EURIBOR, primarily by investing in senior secured loans and other senior debt obligations issued by corporate borrowers rated below investment grade. We target relatively liquid investments domiciled in Europe and the United States.

    Fund specific risks

    • At times, the market for high yield bonds may dry up, which could make it difficult to sell these bonds, or the fund may only be able to sell them at a discount
    • The liquidity of a security can fluctuate over time due to market conditions. Reduced market activity or participation and increased market restrictions or impediments may result in greater liquidity risk
    • As nominal interest rates rise, the value of fixed income securities held by the fund is likely to decrease. Securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations
    • RBC BlueBay's ESG analysis can rely on input from external providers. Such data may be inaccurate or incomplete or unavailable and RBC BlueBay could assess the ESG risks of securities held incorrectly
    • RBC BlueBay could suffer from a failure of its processes, systems and controls – or from such a failure at an organisation on which we rely in order to deliver our services – which could lead to losses for the fund

     

    For share class information, please contact marketing@bluebay.com

    Investment approach

    • Senior secured loans offer what we view as compelling relative value on an absolute and risk-adjusted basis:

      • Loans offer attractive current income with lower price volatility

      • As floating rate instruments, loans offer future upside as rates rise

      • Loans benefit from contractual covenants which seek to control cash flows and protect the interests of creditors

      • Loans have higher levels of security when compared to other fixed income instruments, leading to higher recovery rates in the event of default

    Market opportunity

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    Invests in liquid loans in Europe and the US