BKLN - BKLN: A Near-9% Yield As We Await The Fed's Decision
2024-06-29 08:00:00 ET
Summary
- The Invesco Senior Loan ETF is a risky but potentially high-reward proposition for investors expecting interest rate cuts but don't want to bet on when they'll start.
- BKLN primarily contains junk debt, and that's the biggest risk if higher-for-longer goes on indefinitely.
- This ETF offers a risky but attractive near-9% yield for 'waiting out the Fed', in a manner of speaking. Risk is high, but it's a Buy.
It’s a good time to invest in debt. The economy is still hot despite Fed fund rates being at twenty-year highs for nearly a year ( August 2023 was when it hit 5.33%). Inflation is stubborn, and there doesn’t seem to be a light at the end of the interest rate tunnel just yet....
BKLN: A Near-9% Yield As We Await The Fed's Decision