BKLN Stock Recent News

Investors are flocking to Invesco's bank loan ETF, a fund known for providing attractive income. In the current environment, investors who want to generate as much yield as possible might look to bank loans instead of high yield bonds.

Overall, ETFs pulled out $6.7 billion in capital last week, with U.S. equity ETFs leading the way with $8.1 billion in outflows.

The Fed's indication of a potential credit event may lead to widening credit spreads, making the Invesco Senior Loan ETF attractive for investors. The ETF offers a compelling yield of 8.38% and protection during market downturns due to its investment in senior secured loans. However, the fund carries credit and interest rate risks, and its heavy concentration in the U.S. market makes it risky at the moment.

Federal Reserve hikes have led to strong dividend growth in most variable rate securities and funds. Two of these are senior loans and CLO debt tranches. A look at the similarities, and differences, between these two asset classes follows.

Investors were net sellers of fund assets (including those of conventional funds and ETFs) for the first week in four, withdrawing a net $16.8 billion. Equity ETFs witnessed net outflows for the second week in three, handing back a little less than $1.8 billion for the most recent fund flows week. For the second week in a row, taxable fixed income ETFs experienced net inflows, taking in $2.7 billion this week.

Fixed-income investors looking for interest rate cuts from the Federal Reserve are still waiting, but that hasn't stopped low-rated bonds from posting strong gains in 2023. Bond investors hoping for encouraging signals from the Federal Reserve that its policy of raising interest rates was ending received mixed news yesterday.

For investors seeking momentum, Invesco Senior Loan ETF BKLN is probably on the radar. The fund hit a 52-week high and is up about 6% from its 52-week low price of $20.06/share.

Senior loan ETFs can offer protection against rising interest rates.

Investing in a bank loan ETF can offer a compelling yield while helping maintain defensive portfolio positioning. In the current environment, investors who want to generate as much yield as possible might look to bank loans instead of high yield bonds.

The capital markets continue to anticipate declining rates from the U.S. Federal Reserve as economic data is starting to show signs of slowing inflation. Still, the consumer is feeling the pangs of a high-rate environment, especially when it comes to borrowing money.