Invesco Senior Loan ETF
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Cerity Partners LLC raised its stake in shares of Invesco Senior Loan ETF (NYSEARCA:BKLN) by 5.1% during the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 929,364 shares of the exchange traded fund's stock after purchasing an
Federated Hermes Inc. lessened its position in shares of Invesco Senior Loan ETF (NYSEARCA:BKLN) by 11.1% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 976,245 shares of the exchange traded fund's stock after selling 122,000 shares during the quarter.
Bain Capital Credit LP raised its holdings in shares of Invesco Senior Loan ETF (NYSEARCA:BKLN) by 28.2% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,561,802 shares of the exchange traded fund's stock after buying
Advyzon Investment Management LLC boosted its stake in shares of Invesco Senior Loan ETF (NYSEARCA:BKLN) by 13.4% during the undefined quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 27,041 shares of the exchange traded fund's stock after purchasing an additional 3,194 shares during the
Invesco Senior Loan ETF (NYSEARCA:BKLN - Get Free Report) was the recipient of a large growth in short interest in the month of October. As of October 15th, there was short interest totaling 37,120,000 shares, a growth of 85.8% from the September 30th total of 19,980,000 shares. Based on an average daily volume of 8,680,200
BKLN offers a high 7.55% yield and strong diversification but invests mainly in below-investment-grade, short- to medium-term leveraged loans. Rising default risks, lower interest rates, and increased competition in the leveraged loan market could pressure yields and impact future distributions. A potential Fed rate cut in September 2025 may lower yields on new loans, reducing BKLN's income potential going forward.
With the market roughly at the midpoint for 2025, investors and advisors are still assessing how changing macroeconomic conditions could affect their fixed income portfolio. This topic was discussed at length during the VettaFi Midyear Market Outlook Symposium, which brought together experts and portfolio managers to discuss a wide variety of investment approaches.
BKLN remains a Hold as I anticipate imminent Fed rate cuts, which will likely reduce future income from floating-rate loans. Distributions have declined in line with expectations, reflecting the impact of 2024's rate cuts and portfolio turnover, though recent payments have rebounded slightly. The portfolio's credit quality is stable, but maturities have shifted longer, and most holdings yield in the mid-to-upper single digits.
In recent days, a new headwind is weighing on fixed income securities: a US government budget bill, which is expected to significantly raise an already hefty federal deficit in the years ahead. Long-term Treasuries are the biggest losers post-Liberation Day, based on a set of ETFs through yesterday's close (May 21).
Rising tariff turmoil has sparked a run from credit-sensitive instruments, with escalating trade tensions threatening economic stability. Wednesday's GDP print stoked recessionary fears when it showed the U.S. economy contracted for the first time since early 2022.
It's been another strong year for ETF demand. ETFs gathered approximately $350 billion of new money year-to-date through April 16.
On this week's episode of ETF Prime, host Nate Geraci and VettaFi Investment Strategist Cinthia Murphy analyze ETF flows and trends after a wild week in the markets. Later, Geraci welcomes VistaShares CEO Adam Patti to discuss the firm's unique approach to ETFs.
Leveraged loans offer high yield, short duration, and better risk-adjusted returns compared to junk bonds, making them attractive in today's volatile interest rate environment. BKLN provides exposure to leveraged loans, with a 7.00% yield, 0.10-year duration, and a B+ average credit rating. Given current economic uncertainties, an overweight position in leveraged loans is warranted for better risk/reward, despite credit risks.
Morgan Stanley, Barclays and Macquarie expect only one Fed rate cut this year while Goldman Sachs and Wells Fargo expect two, indicating higher rate environment this year.
Rates are likely to remain at the higher levels. High-yield ETFs should fare better in the near term.
In mid-February 2025, some in the media will be excitedly discussing what stocks were bought or sold by hedge funds in Q4 2024. However, thanks to the Unlimited Hedge Fund Barometer, we can understand today that long/short equity managers were avoiding more cheaply valued small- and midcap stocks in favor of growth stocks.
There are many opportunities in fixed income in the current environment, with bank loans looking uniquely attractive. Bond yields are currently sitting at relatively high levels, which makes bonds look attractive in the current environment despite tight spreads.
The Federal Open Market Committee closed 2024 with its third consecutive reduction to the overnight borrowing rate, while Chair Jerome Powell suggested the pace of rate cuts is likely to slow in the coming year or more. Though the Fed lowered rates multiple times in recent months amid strong economic growth and easing inflation, there is broad uncertainty about how these two metrics will shift into the new year.
Investors are closing the books on another eventful year — marked by record highs for the major stock market indices, record action in Treasury yields and record assets and flows into ETFs. 2024 was also marked by a much-debated pivot from the Federal Reserve, a dramatic Republican sweep in Washington, and plenty of geopolitical turmoil.