Payden Floating Rate Fund Adviser Class (PYBLX)

Overview

The fund is dedicated to investing a significant portion of its assets into income-generating floating rate loans and other floating rate debt instruments. These financial products are notable for their interest rates that adjust or "float" over time, which can be tied to various intervals such as daily, monthly, quarterly, or semi-annually. This adjustment is typically pegged to a base lending rate in addition to a premium. With a primary focus on senior floating rate loans, the fund seeks opportunities both domestically and internationally, aiming to invest in debt obligations of various borrowers that offer the potential for income through interest rate fluctuations.

Products and Services

• Floating Rate Loans

  Floating rate loans serve as the cornerstone of the fund’s investment approach, constituting at least 80% of its total assets. These loans are appealing investments due to their variable interest rates, which adjust periodically based on a benchmark rate plus a set premium. This feature potentially allows investors to benefit from rising interest rates, as the interest income from the loan can increase as rates go up. The fund focuses primarily on senior floating rate loans, which typically hold a higher claim on the borrower's assets compared to subordinated debt.

• Other Floating Rate Debt Instruments

  In addition to floating rate loans, the fund invests in a variety of other floating rate debt instruments. These can include but are not limited to, bonds, notes, and other securities whose interest rates adjust over time in a similar manner to floating rate loans. By including these in its portfolio, the fund diversifies its investment strategy, spreading risk across different types of floating rate products. The selective inclusion of these instruments is aimed at optimizing the fund’s income potential while managing the associated risks.