What are Leveraged Loans and Private Debt instruments?

Leveraged Loans are mainly secured loans to mid-to-large sized companies usually used to support strategic acquisitions and Leveraged Buy-Out (LBO) transactions.

Private Debt instruments are a complementary way to access credit exposure to companies not systematically issuing debt on credit markets for various reasons (size, confidentiality of information / shareholders, speed of execution or private nature of the financing required).

Why consider Leveraged Loans and Private Debt instruments?

Leveraged Loans provide a way to get direct exposure to high yield private corporates while generally providing low interest rates sensitivity (floating interest rates) and protective features against downside (seniority, security and covenants under the loans documentation).

Private Debt instruments can provide diversification, duration with prepayment penalties and an enhanced risk / return profile versus public instruments.

Our approach to Leveraged Loans and Private Debt

The Leveraged Loans & Private Debt expertise is composed of a stable team of experienced portfolio managers and sectorial analysts with complementary backgrounds (Private Equity, rating agencies, banks, asset managers…) and with a local presence in both the European and US markets.

With a 15+ year track record, the Leveraged Loans & Private Debt team has carried out more than 1,000 leveraged loan investments* across the open-ended funds, mandates and Collateralised Loan Obligations (CLOs) it manages.

* Source : AXA Investment Managers as at 22/06/2017

Not for Retail distribution: This document is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly.
This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
Past performance is not a guide to current or future performance, and any performance or return data displayed does not take into account commissions and costs incurred when issuing or redeeming units. References to league tables and awards are not an indicator of future performance or places in league tables or awards and should not be construed as an endorsement of any AXA IM company or their products or services. Please refer to the websites of the sponsors/issuers for information regarding the criteria on which the awards/ratings are based. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. Exchange-rate fluctuations may also affect the value of their investment.  Due to this and the initial charge that is usually made, an investment is not usually suitable as a short term holding. 
Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.
Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 7 Newgate Street, London EC1A 7NX.
In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.