Each week, ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and losers among exchange traded funds.
This week, Lydon looked at the PowerShares Senior Loan Portfolio (BKLN), a high-yield, fixed-income option for a rising interest rate environment.
Fed officials are more hawkish about a rate hike ahead; Fed chair Janet Yellen also hinted at a rate hike and a removal of accommodative measures in the upcoming meeting.
What are senior secured floating rate bank loans, or bank loans? The answer: a senior loan is a private loan taken from an underwriting bank or a syndicate of lenders. The loans are secured in that they are backed by the borrowers’ assets, which act as collateral.