After election and vaccine news, loan rally caps a remarkable 2020 rebound

The likely prospect of a divided government, combined with the announcement of a COVID-19 vaccine, propelled all risk asset sectors sharply higher, including floating-rate loans. As of November 5, total return for loans broke even on a year-to-date basis, and we anticipate positive return for the year. Despite the strong run, the Index yielded 5.0% on November 11 — a senior/secured asset class with four times the yield on the Bloomberg Barclays U.S. Aggregate Index.