Syndicated loans offer fixed income alternative: Bentham AM

Binaya Dahal

Journalist

25 June 2026

Bentham Asset Management’s Richard Quin has suggested investors seeking high income without fixed rate risk to consider syndicated loans, saying it presents a viable alternative to traditional fixed income strategies.

Quin, chief investment officer at the Sydney-based credit and fixed interest manager, said the possibilities of adverse consequences in the asset class was lower as it sits within senior secured corporate lending markets and typically provides first lien exposure at a floating interest rate.

“Syndicated loans are arranged by groups of banks to finance large companies, for mergers and acquisitions, buyouts or recapitalisation, and provide senior secured, first lien exposure at a floating rate, which limits downside risk,” he said.

He added that while the structure of the asset class was important, investment outcomes ultimately depend on rigorous credit selection and diversification across a wide range of issuers.

“Credit selection is critical. You must be highly diversified, but you also have to avoid the losers. That requires deep research and a network experienced managers in this asset class,” Quin said.

Quin also drew a distinction between syndicated loans and private credit, pointing to differences in pricing transparency and liquidity.

Unlike private debt, investors mark and trade syndicated loans daily, giving them greater visibility over valuation movements and enabling them to exit positions more readily when needed.

Moreover, the firm said its own Bentham Syndicated Loan Fund, which runs through its SIG team, spans about 70 investment professionals across New York and London and covers roughly 800 corporate issuers across US and European markets.

“It has delivered a constant income stream for more than 22 years, with returns approximating 7.5 per cent per annum before fees and currently yielding around 9.1 per cent,” Bentham Asset Management said.

Quin said this investment suits investors seeking a return above bank bills without fixed-rate exposure. “They are taking the current bank bill rate and adding a credit risk premium, and that gives them a higher income.”