Senior Loan ETFs Bolstered by Solid Economic Numbers

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Over the past 30 days, investors have added $69.63 million to BKLN, a total surpassed by just four other Invesco ETFs.

Because rates are typically reset once per quarter, senior loans typically have low durations. Since the senior loans have rates that adjust periodically, the floating-rate loans also offer investors an alternative method of earning yields while mitigating interest-rate risk.

Related: Top 56 High Yield Bond ETFs

Senior “loans are callable, and when demand is as strong as it has been for the last year, companies regularly refinance on better terms even as rates are rising,” notes CNBC.

For more information on the fixed-income space, visit our bond ETFs category.