Secured Loans


Superior, risk adjusted returns while focusing on capital preservation

Secured Loans Strategy

Secured Loans Strategy

Secured Loans offer a floating rate of income, with a fixed margin above underlying reference rates, giving protection in a rising interest rate environment and less duration risk than fixed rate assets. In most cases, loans will also have protection in a negative interest rate environment, through an interest rate “floor”, which results in loans receiving a minimum base rate of zero even if underlying base rates are negative. Due to their position in the capital structure, Secured Loans typically display lower secondary market price volatility than High Yield Bonds.

Secured Loans are expected to offer a higher recovery rate in the event of default than unsecured obligations. Loan investors can also receive the benefit of legal protection that provide controls and restrictions over borrowers in the event of weaker performance.

Further information for Japanese residents seeking to invest in a secured loan fund registered in Japan can be found here.

Japanese Regulatory Information

Alcentra’s Approach

Alcentra is one of the leading participants in this market, and is frequently approached by private equity firms, arranging banks and borrowers as a cornerstone investor in high profile corporate financings.

Please contact us for further information on the strategy or on the Management Team.

Secured Loans Funds

BNY Mellon Floating Rate Income Fund

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