BKLN - BKLN: Leveraged Loan ETF With An Implicit Inflation Hedge
- BKLN is a leveraged loan ETF with a 2.73% SEC yield.
- Middle of the road Sharpe ratio of 0.42 with a very low standard deviation of 4.81.
- While drawdowns have been very shallow (sub 10% loss), the trailing 3- and 5-year total returns are mediocre at 2.7% and 3.1%, respectively.
- Fundamentally, the leveraged loan market is very strong with issuer leverage continuing to decline and interest coverage ratios going up.
- SOFR has not yet been fully adopted by the loan market, with the Libor replacement rate eventually resulting in forecasted lower all-in yields.
For further details see:
BKLN: Leveraged Loan ETF With An Implicit Inflation Hedge