BKLN Stock Recent News

The leveraged loan market has seen a deterioration in credit quality, with an increase in the number of issuers rated B and CCC since the COVID-19 pandemic. Rising short-term interest rates may lead to higher default rates for leveraged loans, potentially surpassing junk bond defaults during the current credit cycle. The Invesco Senior Loan ETF has experienced a subtle shift in credit quality, which could impact its performance as interest rates continue to rise.

With uncertainty around interest rates, inflation, and the possibility of recession, most investors will benefit by staying within the short to intermediate part of the curve when allocating to fixed income ETFs. Similarly, opting for balanced fixed income exposure as opposed to making big bets is recommended in the current environment.

Invesco has six non-core fixed income ETFs that advisors can add to portfolios to create alpha opportunities and increase portfolio diversification. Exposure to non-core fixed income is important as the largest U.S. bond index only provides exposure to approximately 40% of the U.S.

Most Undervalued Asset Classes, Equity Industries, Segments, And Regions.

This week, the VettaFi Voices gathered around the water cooler to talk about fixed income.

The BKLN ETF gives investors a convenient way to invest in a basket of floating-rate senior loans. BKLN pays an attractive 6.0% trailing distribution yield.

Senior loans are attractive when compared to same-duration bonds while insulating better against stock market volatility in a period of rising rates. Additionally, Invesco Senior Loan ETF BKLN provides for relatively higher yields, too.

Senior loans are, thanks to their floating rates and short duration, the best performing bond category this year. They now face a double challenge: high inflation (and hence high interest costs) and a slowing economy.

While 2022 is not finished, two things are quite likely to be a fact in early 2023.

As investors continue their search for yield, ETFs that track senior bank loans are seeing increased attention. The Invesco Senior Loan ETF (BKLN), which follows the market-weighted performance of the 100 largest senior bank loans, has seen a recent surge in inflows.