About Private Credit

The Bluerock High Income Institutional Credit Fund seeks to accomplish its objectives by investing, directly and indirectly, in private credit through managed pools of diversified Senior Secured Loans known as Collateralized Loan Obligations (CLOs).

Senior Secured Loans: Potential Portfolio Enhancement
Where do Senior Secured Loans fit in a portfolio?

Senior Secured Loans have been a resilient, multiple market cycle-tested asset class delivering both high current income and defensive characteristics, while fitting within a broadly diversified fixed income strategy.

Addressing Challenges in the Current Market

Yields on traditional income investments have been declining for over a decade. This requires individual investors to adapt their income strategy to today’s low yield environment through alternative sources.

Select Historical Index Yields1
(Yields as of 3.31.2022)

Senior Secured Loans are Issued by Large, Well-Known Companies with Stable Market Demand

Senior Secured Loans typically provide financing for business needs, mergers and acquisitions related transactions or capital expenditures.

1,200+ Diversified Companies2

Who are the Institutional Investors in the Senior Secured Loan Market?3

They include:

  • Institutional Asset Managers
  • Banks
  • Insurance/Finance Companies
  • Hedge Funds
  • Pension Funds and Endowments
  • Sovereign and Private Wealth Funds
  • Family Offices
Senior Secured Loans have Delivered Positive Returns in 23 of 25 Years (92%)

Leveraged Loan Index4
(1997 – 2021)

1 finance.yahoo.com, FRED.stlouisfed.org, S&P Dow Jones Indices, FTSE Russell, Treasuries: 10-year US Treasury Bond; Investment Grade Bonds; ICE BofA AAA US Corporate Bond Index; Municipal Bonds; S&P Municipal Bond Investment Grade Index; High Yield Bonds; ICE BofA BB US High Yield Corporate Bond Index; Emerging Market Debt: FTSE Emerging Markets Broad Bond Index. You cannot invest directly in an index and unmanaged indices do not reflect fees, expenses or sale charges. Past performance is not a guarantee of future results.

2 Sample companies that have loans in CLOs. For illustrative purposes only. These are just a few as there are over $1.3 trillion of bank loans to these kinds of companies. Source: Citi Research as of 3.31.2019 and Dell 10-Q as of 3.31.2021.

3 Morgan Stanley and Citi Research as of 12.31.2019

4 S&P/Loan Syndications and Trading Association (LSTA) – Leveraged Loan Index, as of 12.31.2021. Past performance is not  indicative, or a guarantee of, future performance.