Public Fixed Income

Anchored by Income: The Resilience of Broadly Syndicated Loans

October 2026 – 6 min read

Contractual income, a deep and stable institutional investor base and diversification benefits have helped loans deliver resilient performance across a wide range of market environments, reinforcing their role as a strategic portfolio allocation.

Markets have navigated a challenging backdrop in recent years, shaped by geopolitical tensions, shifting trade policies and the evolving and uncertain implications of artificial intelligence. Yet amid these crosscurrents, the broadly syndicated loan market has remained notably resilient. Over the past decade, loans have delivered both positive returns and strong risk-adjusted performance relative to other liquid fixed income sectors (Figure 1)—driven by the asset class’s contractual income, deep institutional investor base and lower volatility profile.

Figure 1: 12-Month-Return Sharpe Ratio by Asset Class

Figure 1: 12-Month-Return Sharpe Ratio by Asset ClassSource: S&P UBS Global Leveraged Loan Index, ICE BofA Non-Financial Developed Markets High Yield Constrained Index (HNDC), J.P. Morgan CEMBI Broad Diversified Index, Bloomberg Global Aggregate Index, S&P 500 Index. As of December 2025. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Structural Advantages of Loans

There are several defining characteristics of the broadly syndicated loan asset class that have contributed to its strong performance over time, despite periods of market volatility and shifting macroeconomic conditions.

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Headshot of Chris Sawyer smiling at the camera.

Chris Sawyer

Head of European High Yield

Amanda Koelzow

Senior Director, Client Portfolio Management

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