360° Coverage : OppenheimerFundsVoice: A Potential Income Solution For When...

2 Updates
OppenheimerFundsVoice: A Potential Income Solution For When Rates Rise
Photo Credit: Forbes Business

OppenheimerFundsVoice: A Potential Income Solution For When Rates Rise

Mar 27 2014, 10:19am CDT | by

Although our view on interest rates is low for long, we understand clients’ concerns regarding rising rates. Irrespective of the direction of interest rates, the best opportunity in the fixed income...

Filed under: news

 
 
 

25 weeks ago

OppenheimerFundsVoice: A Potential Income Solution For When Rates Rise

Mar 27 2014, 10:19am CDT | by

Although our view on interest rates is low for long, we understand clients’ concerns regarding rising rates. Irrespective of the direction of interest rates, the best opportunity in the fixed income universe is in credit.

Senior floating rate loans are particularly attractive in today’s market. They offer a hedge to rising rates as their coupon floats with 90-day LIBOR; they are senior in the capital structure and are usually collateralized by assets of the issuer. Finally, they presently pay a coupon that outpaces the current level of inflation. As an asset class, these loans have historically displayed low correlations to U.S. Treasuries, investment-grade government debt, investment-grade corporate bonds and stocks.

Access the full Low Rates for a Long Time, and Preparing for the Eventual Rise white paper.

This story previously appeared on OppenheimerFunds.com.

Source: Bloomberg, 12/31/13. The Credit Suisse Leveraged Loan Index is an unmanaged index that tracks the performance of senior floating rate bank loans. The Barclays High Yield Bond Index represents the U.S. high yield debt market. The Barclays Aggregate Bond Index is an investment-grade domestic bond index. The indices shown are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment.  Past performance does not guarantee future results. Fixed income investing entails credit risks and interest rate risks. When interest rates rise, bond prices generally fall, and a fund’s share prices can fall. Investments in below-investment-grade (“high yield” or “junk”) bonds are more at risk of default and are subject to liquidity risk. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and political and economic uncertainties. Emerging and developing market investments may be especially volatile. Diversification does not guarantee profit or protect against loss. Senior loans are typically lower rated and may be illiquid investments (which may not have a ready market). Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Each Fund’s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase volatility. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations, which may result in erratic price movement or difficulty in buying or selling. Additional management fees and other expenses are associated with investing in MLP funds. The Oppenheimer SteelPath MLP Funds are subject to certain MLP tax risks. An investment in Oppenheimer SteelPath MLP Fund does not offer the same tax benefits as a direct investment in an MLP. The Funds are organized as subchapter “C” Corporations and are subject to U.S. federal income tax on taxable income at the corporate tax rate (currently as high as 35%) as well as state and local income taxes. The potential tax benefit of investing in MLPs depends on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation, its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution, which could result in a reduction of the fund’s value. MLPs funds accrue deferred income taxes for future tax liabilities associated with a portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV and as a result a MLP fund’s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. These views represent the opinions of OppenheimerFunds and are not intended as investment advice or to predict or depict performance of any investment. These views are as of the open of business on March 21, 2014 and are subject to change based on subsequent developments. Carefully consider fund investment objectives, risks, charges and expenses. Visit oppenheimerfunds.com, call your advisor or 1.800.225.5677 (CALL-OPP) for a prospectus with this and other fund information. Read it carefully before investing. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. OppenheimerFunds Distributor, Inc. is not affiliated with Forbes.
© 2014 OppenheimerFunds Distributor, Inc. All rights reserved.

Source: Forbes Business

/>
 
Update
2

3 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and sla ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

UN mission team to combat Ebola arrives in Africa
United Nations, Sep 23 (IANS) An advance team of the United Nations Mission for Ebola Emergency Response (UNMEER) has arrived in Ghana's capital Accra to set up the operation's headquarters, a UN spokesman said Monday.
 
 
Spanish Ebola patient in 'serious' condition
Madrid, Sep 23 (IANS) An Ebola affected Spanish missionary who was flown back from Sierra Leone was described as "serious" by the health authorities in Spain.
 
 
Alibaba raises $25 bn in history's biggest IPO
New York, Sep 22 (IANS/EFE) Chinese e-commerce giant Alibaba collected $25 billion in the largest initial public offering ever after underwriters exercised an option to purchase additional shares, the company said Monday.
 
 
Ukraine to partially replace gas with heating oil
Kiev, Sep 22 (IANS) Ukraine will increase the use of heating oil in the county's energy mix to replace natural gas, Deputy Prime Minister Volodymyr Groysman said here Monday.
 
 
 

Latest from the Network

FIFA member predicts 2022 World Cup will not be held in Qatar
Berlin, Sep 23 (IANS/EFE) A member of the executive committee of international soccer's governing body, FIFA, said Monday that he doubted the 2022 World Cup would be held in Qatar, on account of its high temperatures...
Read more on Sport Balla
 
UN agency steps up aid for 130,000 Syrian refugees
United Nations, Sep 23 (IANS) The UN Refugee Agency (UNHCR) has been stepping up assistance to the Turkish government to aid an estimated 130,000 Syrian Kurds who have crossed into Turkey since last Friday, the United...
Read more on Politics Balla
 
French national abducted in Algeria: France
Paris, Sep 23 (IANS) A French national was kidnapped in Algeria's Tizi Ouzou region Sunday, the French foreign ministry said Monday. "A French national was kidnapped on Sunday in Algeria, in the region of Tizi Ouzou,...
Read more on Politics Balla
 
Charlie Sheen wants Two and a Half Men return
Charlie Sheen wants to reprise his role on 'Two and a Half Men'. The 49-year-old actor - who was fired from the show in 2011 after rowing with its producer Chuck Lorre and subsequently threatened him and Warner Bros...
Read more on Celebrity Balla
 
Ariana Grande's life coach 'couldn't handle' her behaviour
Ariana Grande's life coach quit because he ''couldn't handle'' her bad attitude. According to the New York Post newspaper's Page Six column, the 21-year-old singer's former employee - who was in charge of keeping her...
Read more on Celebrity Balla
 
Nicolas Cage slept in Dracula's castle
Nicolas Cage spent the night in Dracula's castle. According to the 50-year-old actor's 'Ghost Rider: Spirit of Vengeance' co-star, Idris Elba, Nicolas opted to stay in the fictional vampire's home to ''channel his...
Read more on Celebrity Balla
 
David Hasselhoff: Justin Bieber is a 'cool guy'
David Hasselhoff thinks Justin Bieber is a ''cool guy''. The 'Baywatch' star confessed he had ''a lot of fun'' with the 20-year-old singer on the set of his latest video and claims the unlikely duo had ''a blast''...
Read more on Celebrity Balla
 
Some American IS recruits are back in US: White House
Washington, Sep 23 (IANS/EFE) The Obama administration believes that some of the roughly 100 Americans who may have travelled to the Middle East to join the ranks of the Islamic State (IS) militant group have returned...
Read more on Politics Balla
 
Now Bieber lives healthier lifestyle
Los Angeles, Sep 23 (IANS) Singer Justin Bieber, more popular for his off-stage antics rather than music, is reportedly embracing a healthier lifestyle and has given up alcohol. According The Sun newspaper, Bieber is...
Read more on Celebrity Balla
 
Ukraine, rebels creates buffer zone amid new casualties
Kiev, Sep 23 (IANS) Ukrainian troops and independence-seeking rebels have started establishing a weapon-free buffer zone to separate the areas they control from each other, the country's military said Monday. "A...
Read more on Politics Balla