“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.
Related: The King of Corporate Bond ETFs
BKLN has a 30-day SEC yield of 4.19%. Ninety-three percent of the fund’s holdings are rated BBB, BB and B.
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