BMO US Mid Market Loans Market Update - April 2020

Risk Disclaimer 

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Changes in interest rates can affect the value of fixed interest holdings and may adversely affect the value of your investment.

An investment in the fund will require the commitment of capital to the full investment period.

Investments in non-investment grade middle market loans may result in a greater risk of issuer default and hence the risk of negative impact on both income and capital value.

The last few weeks have been an extraordinary test for both public and private markets. Volatility has increased to levels above and beyond what we have seen in 2008. After enjoying an ever-lengthening stretch of benign market conditions since the global financial crisis, the black swan has unexpectedly appeared.

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

For private debt investors, the task of navigation begins! This will involve assessing the new landscape, one’s position in it, and what to do next. As with all areas of the investment world, there will be profound challenges ahead. But we all know that crises can offer opportunities for those who keep a cool head and read the signs well. This document describes a handful of our early observations we have come across in portfolios owned by BMO Financial Group.

Changes in interest rates can affect the value of fixed interest holdings and may adversely affect the value of your investment.

An investment in the fund will require the commitment of capital to the full investment period.

Investments in non-investment grade middle market loans may result in a greater risk of issuer default and hence the risk of negative impact on both income and capital value.

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