Understanding Senior Secured Loans
Low LTV senior secured loans often have a loan-to-value ratio of approximately 40-60%1
Senior Secured Credit Instruments Recovery Rates 1987 – 2019
Default Rate Of Leveraged Loans
Historic default rates of leveraged loans is lower than that of high yield bonds. CLO instruments reduce the risk of default and absorption of credit losses as they create a leveraged loan portfolio spread over hundreds of borrowers. The US leveraged loan default rate fell to its lowest point of 0.44% in September 2021.
Default Rates of Leveraged Loans & Bons Recovery Rates of Leveraged Loans & Bonds
Low Loan Default Rates Among Peace Park's Partners
Peace Park works with CLO portfolio managers whose default rates are significantly below average.
