为什么floating interest降低了inflation对bond的影响

问题如下：

How does inflation risk impact leveraged loans in the private debt market?

选项：

A.

It has no impact as the interest rates are fixed.

B.

Rising inflation may increase the default risk as the borrowers' repayment burden increases.

C.

The floating coupon structures in leveraged loans can help mitigate inflation risk as the interest rates reset with inflation expectations.

解释：

C is the correct answer. Leveraged loans typically have floating coupon structures where the interest rates reset based on market reference rates, which incorporate inflation expectations. This means that as inflation rises, the interest rates on leveraged loans can adjust upwards, helping lenders maintain the real value of their returns and mitigating the negative impact of inflation on the investment. In contrast, if the interest rates were fixed (answer A), inflation would erode the real value of the returns. While rising inflation could potentially increase the default risk in some cases (answer B), the main way leveraged loans address inflation risk is through their floating rate feature.

杠杆贷款通常具有浮动票面利率结构，利率根据包含通货膨胀预期的市场参考利率进行重置。这意味着随着通货膨胀上升，杠杆贷款的利率可以向上调整，帮助贷款人维持其回报的实际价值，并减轻通货膨胀对投资的负面影响。相反，如果利率是固定的（选项 A），通货膨胀会侵蚀回报的实际价值。虽然在某些情况下，通货膨胀上升可能会增加违约风险（选项 B），但杠杆贷款应对通货膨胀风险的主要方式是通过其浮动利率特征。