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Bank Loans or Floating Rate Notes: Which Should You Consider?

VanEck of VanEck
Bank Loans or Floating Rate Notes: Which Should You Consider?

SOKOL: You mentioned bank loans, which is another floating rate asset class. There are other low-duration strategies that investors can allocate to, to reduce interest rate risk. You figure to reduce duration in your portfolio, you can either hold cash, or short-term bonds – very short-term bonds – or, as we were talking about just a minute ago, you could hold something like levered loans, or bank loan funds.