Senior Secured Loans (SSL) 2.0: still 'once in a generation?' Ft. Invesco's Ash O'Connor

Nov 15, 2023

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After one of the most popular Australian Investors Podcast episodes of 2022, Ashley O’Connor is back.

Ashley is an experienced equity and bond markets investor at Invesco.

Ashley joins Owen Rask on The Australian Investors Podcast to talk about Senior Secured Loans (SSL) and what's changed in the past year, since Ash referred to SSLs as a 'once-in-a-generation' opportunity.

Episode specific resources:

Interview #1 with Ash: https://www.raskmedia.com.au/2022/12/05/ashley-oconnor-invesco/
Invesco & SSL fund website: https://www.invesco.com/au/en/funds/invesco-wholesale-senior-secured-income-fund.html

Talking points with Invesco’s Ashley O’Connor

What's the one investment you got totally wrong?

What’s one investing belief or idea (e.g. ‘buy low, sell high’) that investors place way too much weight on?

In 2022 we spoke and you introduced the Rask audience to the idea of senior secured loans (SSLs). What has happened since?

For listeners who are not familiar with SSLs, can you break it down for us?

How have SSLs compared next to US treasuries in that time?

How do loans compare to, say, corporate bonds? In the event of default, what happens to SSLs across the credit stack?

What credit metrics are assessed by the Invesco team? What would a typical analyst working on the SSL desk be looking at day-in, day-out?

Given the team uses both bottom-up and top-down, how are macro risks deflected? Are there industries you avoid? Market segments that are uninvestable?

Rates going up sounds good for floating rates, but doesn’t that mean higher defaults?

Last year you called it a ‘once in a generation’ opportunity. Where does the current opportunity sit?

I’d like to shift gears towards 3 names in the portfolio listeners might be familiar with. Can you walk us through businesses, what they do, how they make money, and metrics you have on their size?

What’s one book/podcast you wish you read/listened to earlier in your career?

What’s been your best investment of all time?

Resources you'll love

Rask Invest - Invest with Owen: https://bit.ly/R-invest
Mortgage Broking: https://bit.ly/broke-rask
Financial Planning: https://bit.ly/R-plan
Property Coaching: https://bit.ly/R-P-coach
Business Coaching: https://bit.ly/o-coach
Ask a question: https://bit.ly/3QtiY00

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