Oaktree formed the European Senior Loan strategy in 2006 to actively invest in senior secured loans in the growing European bank loan market. The strategy seeks to achieve an attractive total return while maintaining a focus on preserving principal and avoiding defaults.
"We approach senior loan investing as long-term lenders, selecting high quality borrowers whose risk of default is low, and where our debt is secured by the assets of the issuer," says Madelaine Jones, who co-manages the strategy alongside James Turner.
We focus on the senior secured debt of issuers in Europe, and a majority of our portfolio consists of floating-rate obligations. We may also invest opportunistically in senior secured, fixed-rate bonds in which we see the potential for enhanced returns relative to floating-rate loans. The strategy benefits from the experience and expertise of Oaktree's London-based European Credit team, which began investing in non-investment grade credit in 1999.
Learn more about Oaktree's SICAV Funds.