Did the Market Know Anything About Senior Loans?

The market was flat wrong in two thousand eight when it took morgan stanley's stock so low. It properly reflected the possibility of a melt down that could have happened, but didn't. Senior loans became a significant area of activity for credit investors like us. They're typically their issuers senior most debt, so they are perceived to carry little credit risk. Since they pay interest at floating rates, there is no interest rate risk. Of course, with so little risk, they offer low yields. And i'm firmly convinceda, the average investor doesn't know much about future events.