2024-04-13 11:00:00 ET
Summary
- The Invesco Senior Loan ETF is a passive investment vehicle giving exposure to leveraged loans.
- The BKLN ETF has returned a handsome 9% total return since June despite rising defaults as credit spreads have tightened.
- Looking forward, with a yawning gap between credit spreads and actual defaults, I believe forward returns may not be as robust as investors expect.
Last summer, I wrote a cautious article on the Invesco Senior Loan ETF ( BKLN ), warning that rising leveraged loan defaults could pose a headwind to the BKLN ETF....
Read the full article on Seeking Alpha
For further details see:
BKLN May Deliver Sub-Par Returns In 2024