Investors are Turning to Senior Secured Floating Rate Bank Loans

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). More fixed-income investors are turning to senior secured floating rate bank loans as a way to hedge rising rate risks and still generate yields.

The increasing influx into the senior loan portfolio suggests that investors are growing wary of a potential Fed rate hike and want to position their fixed income portfolios accordingly

Click here to listen to the podcast.