BKLN - BKLN: High Yield Senior Loans May Be Headed For A Reckoning

After experiencing extreme declines, the high yield credit market has nearly returned to all-time highs. This has largely been due to immense central bank stimulus, as detailed in the article "SLQD: Taking A Closer Look At The Federal Reserve Backstop".

One fund that experienced an extreme drop and an equally extreme recovery is the Invesco Senior Loan ETF (BKLN). As you can see below, the usually stable fund lost about 25% of its value and saw its dividend yield spike to 7% before almost fully reversing:

Data by YCharts

BKLN invests

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