BKLN Flows Soar as Investors Seek Senior Bank Loans

Invesco Senior Loan ETFs (BKLN B+) are gaining significant interest as investors seek yield in the current environment.

In recent weeks, ETFs tracking senior bank loans have gained more attention. BKLN Being the leader of the pack when it comes to bringing in new money. According to Invesco’s website, SEC The fund yields 6.6%.

BKLN We follow the market-weighted performance of the top 100 top bank loans. Todd Rosenbluth, VettaFi’s head of research, said in October that the fund would generate relatively strong returns without much interest rate risk.

Although the beginning of the year started with an outflow, BKLN reversed in favor. According to VettaFi, in October he received $727 million in funding, and as of November 7, since November 1, he has had an additional $101 million flowing into the fund. increase.

A senior bank loan is a bond issued by a bank or similar financial institution to a company, repackaged and sold to investors. Senior bank loans have a floating rate and are adjusted regularly to the market, which is why they are soaring in popularity in the current rising interest rate environment.

BKLN Based on Morningstar LSTAs US Leveraged Loan 100 Index. The Fund typically invests at least 80% of its total assets in the constituent stocks that make up the index. According to Invesco’s website, the index tracks the market-weighted performance of the largest institutional leveraged loans based on market weighting, spreads and interest payments.

The Fund does not purchase all securities in the Index. Instead, it seeks to utilize sampling techniques to achieve its investment objectives. According to Invesco’s website, both the fund and the index are rebalanced and reconstituted twice a year in June and December.

For more news, information and strategies, visit Innovative ETF Channel.

Leave a Comment