|Day's Range||23.28 - 23.31|
|52 Week Range||22.96 - 23.46|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.64%|
Despite their many positive attributes, it’s getting easier to pick on bank loans. On the plus side, these securitized loans made to companies rated below investment grade—also known as leveraged loans or senior loans—offer floating rates, so yields should rise as the Federal Reserve boosts interest rates. Despite the Fed’s rate hikes, yields on bank loans have fallen as many companies have refinanced their debt at lower rates (see “The Hidden Risks of Bank-Loan Funds,” Feb. 11).
Leveraged loans, securities held in popular bank loan funds, have a lot going for them in the current environment -- they are floating rate, senior to bonds in a company's capital structure, and offer ...
This article is part of a regular series of thought leadership pieces from some of the more influential ETF strategists in the money management industry. Today’s article features Gary Stringer, president and chief investment officer of Memphis, Tennessee-based Stringer Asser Management. We think bank loan ETFs offer an attractive risk/reward profile in this challenging fixed-income environment.