BKLN - Senior Loans And BKLN: Still A Buy Even If The Fed Cuts
2024-01-27 08:34:51 ET
Summary
- Senior loans have the highest yields in the fixed income space right now.
- Yields will decline as the Fed cuts rates, but seem likely to remain competitive for several years regardless.
- BKLN is the largest senior loan ETF in the market, and its 8.7% yield would likely remain competitive even if the Fed cuts rates.
Long-time readers know I've been bullish on senior loans and other variable rate investments for years . These have performed exceedingly well too, as Federal Reserve hikes have led to significant dividend growth with almost no impact on prices. As the Fed is poised to cut rates in the coming months , thought to have another look at senior loans, to see if these remain viable investments under more unfavorable macro conditions....
Senior Loans And BKLN: Still A Buy Even If The Fed Cuts