Presentation DWS Floating Rate Fund - DWS Investments

What are floating-rate loans
Characteristics
— Floating-rate loans, also referred to as bank loans, leveraged loans or syndicated loans, are
loans with floating-rate coupons that are generally senior secured debt of
below-investment-grade corporate issuers
— Coupons or income are tied to a variable rate, most commonly the London Interbank
Offered Rate (LIBOR) and generally reset every 30-90 days
— Floating-rate loans are most often secured assets that can be transferred to debt holders in case
of default, providing potential downside protection
Benefits of floating-rate loans
— Historically, i floating-rate t loans have experienced lower default rates and higher h recovery rates
than that of traditional non-investment-grade bonds
— More structural protection (collateral and maintenance covenants) than traditional
non-investment-grade bonds
— Floating-rate coupon potentially leads to less interest-rate sensitivity than
traditional bonds
LIBOR, or the London Interbank Offered Rate, is a widely used benchmark for short-term term taxable interest rates. Coupon is the interest rate, expressed as an annual
percentage of face value, which a bond issuer promises to pay until maturity.
Deutsche Asset
& Wealth Management Investment products: No bank guarantee I Not FDIC insured I May lose value 30