“The improving economic outlook and investor demand for yield facilitated this increasing debt load. Leveraged buyout activities and relaxing lending standards also contributed to this growth. On top of the credit risk, senior loans carry considerable liquidity risk,” according to Morningstar.
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BKLN has a 30-day SEC yield of 4.19%. Ninety-three percent of the fund’s holdings are rated BBB, BB and B.
Rivals to BKLN include the actively managed SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN) and the Highland/iBoxx Senior Loan ETF (NYSEArca: SNLN).
For more information on the fixed-income space, visit our bond ETFs category.