|Bid||21.01 x 800|
|Ask||22.60 x 45100|
|Day's Range||22.53 - 22.58|
|52 Week Range||21.59 - 23.27|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.16|
|Expense Ratio (net)||0.63%|
As stocks continue to build forward momentum after a tumultuous December, it's been high-yield bonds going the opposite direction with the ICE BofAML US High Yield Master II Total Return Index resuming its downward trajectory. Investors looking to capitalize on the weakness in high yield can look to the ProShares Short High Yield (SJB) . With respect to their 200-day moving averages, SJB is tracking above this level while high-yield bond ETFs like the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), iShares iBoxx $ High Yield Corp Bd ETF (HYG) and the Invesco Senior Loan ETF (BKLN) are languishing in the current risk-off environment.
Amid fears of rising Treasury yields, some investors pulled money from fixed income funds for the week ended Nov. 1, but some exchange traded funds focusing on bonds managed to see healthy inflows. “Investors ...
Leveraged loans, also known as senior loans, are embraced by bond investors as interest rates rise due in large part to the floating component sported by these bonds, which helps mitigate sensitivity to higher interest rates. BKLN tracks the S&P/LSTA U.S. Leveraged Loan 100 Index and is the largest ETF dedicated to leveraged loans. Year-to-date, BKLN has traded modestly lower, incurring losses that are significantly lower than those of more traditional, longer-dated bond ETFs.
The constant strain of the Sino-U.S. trade relationship brought Chinese stocks to their knees in 2018 – the latest wave of selling sending mainland Shanghai Composite Index to levels not seen since November 2014. Volatility-tied products are under pressure again as wild price swings have returned to the markets. U.S. homebuilders are going through rough times with disappointing numbers in building permits and housing starts. Rising funding costs are a major problem for indebted corporations, especially as U.S. companies' debt load reached record levels of $6.3 trillion. Closing the list, FAANGs have a wall of worries to climb with Netflix hoping to lead the way up with surging revenue and subscriber adds. Check out our previous Trends edition at Major Stock Indices Feel The Pain of Multi-Year High Rates.
High yields and floating rates are among the factors drawing investors to senior loans and related exchange traded funds, such as the PowerShares Senior Loan Portfolio (NYSEArca: BKLN). Strong domestic ...
Federal Reserve Chairman Jerome Powell confirmed the overall market consensus on Wednesday that interest rates would rise with the announcement that the federal funds rate would elevate by 25 basis points to 2.25. In the bond markets, activity for high-yield, senior loan and floating rate-focused ETFs ticked higher as investors scrambled to position their portfolios to take advantage of the higher interest rates. "In fixed income, high-yield (which has been quiet of late) saw some increased activity and was mostly better for sale," noted Brian Gilman of ETF Sales & Trading at Virtu Financial.
As the stock market continues to make record highs, the infusion of robotics and artificial intelligence in the bond market is giving the fixed-income space its own renaissance as more emerging technologies are changing the landscape of the industry. A recent Forbes article highlighted the bout of changes happening in the fixed-income arena, such as more reliance on machine learning, automation and algorithms. Adopting this technology can allow for better liquidity and enhanced speed when it comes to identifying trends within the bond market.
Due to their floating rate component, bank loans are seen as an attractive alternative to traditional high-yield corporate bonds in a rising rate environment. Bank loan securities allow their interest ...
Senior loans can be attractive options for fixed income investors looking for the combination of solid yields and some protection against rising rates. Among exchange traded funds, the Invesco Senior Loan ...
To prepare well in advance, Gundlach, CEO of DoubleLine Capital, has adjusted his portfolio with some of his favorite picks: Invesco Senior Loan, SPDR S&P Oil & Gas Exploration & Production, iShares MSCI Brazil, Tortoise MLP and Wisdom Tree Japan Hedged Equity.
When a business is in a credit crunch, a leveraged loan could provide it with the necessary capital injection to buoy its operation. This is the fixed income space in which Invesco Senior Loan ETF (BKLN) manages to earn solid returns. BKLN is based on the S&P/LSTA U.S. Leveraged Loan 100 Index where 80 percent of its total assets are focused in component securities that comprise the Index.
As government debt yields continue to slide amid trade concerns in the first half of 2018, more investors are willing to accept more risk in order to achieve higher yields in the fixed income space. “One ...
In a rising interest rate environment, hedging investors are looking to move capital into fixed income ETFs that react in conjunction with interest rates, such as the Invesco Senior Loan ETF (BKLN) , which is garnering interest as of late. BKLN's current average volume is 4.2 million, but that has almost doubled recently. Performance has been solid with BKLN up 1.34% year-to-date, up 2.25% for the year and up 2.42% the past three years.
Due to their floating rate component, bank loans are seen as an attractive alternative to traditional high-yield corporate bonds in a rising rate environment. Bank loan securities allow their interest rate to shift, or float, along with the rest of the market, whereas a fixed interest rate stays constant until maturity. Investors, though, should not forget that senior bank loans are denoted high-yield because the issuing firms are highly leveraged, and highly leveraged companies are more at risk of default and bankruptcy.
In today's rising-interest-rate environment, senior loan funds' low-interest-rate risk and enticing yields have made them alluring. Senior loans' yields go up in lock step with short-term interest rates, offering an effective duration hedge, but they come with significant credit risks, as most of these loans are issued by companies rated below investment grade. Since 2010, their credit risk has gradually crept up.
Speculative-grade corporate bonds and junk bond ETFs are picking up again, revealing the ongoing appetite for higher yielding bonds despite rising rate risks, large fund outflows and risk-off concerns. ...
Private market credit, peer-to-peer lending and senior loans have similar risk profiles to traditional fixed-income securities.
Income. It’s what retirement is made of. And while the Federal Reserve has been dialing up interest rates, finding big income from traditional sources is still hard to come by. Money market funds, CDs and even 10-year Treasury bonds aren’t paying much of anything these days. For income-starved retirees, getting a paltry sub-2% isn’t going to cut it. Finding better income solutions is a paramount concern.
The intensity of recent volatility captured the top spot on the list as investors ponder a return to the markets. Technology stocks have recouped most of the losses from the start of the month, while the signed bill that grants a hike in military spending continued to drive interest towards the aerospace & defense sector. The recent sharp rise in government bond yields also caught attention as well as high-yield bonds, which trended thanks to a growing desire to diversify away from more volatile assets.