$9.73—
NYSE
$9.73—
First Trust Senior Floating Rate 2022 Target Term Fund (FIV) is a closed-end fund that primarily invests in senior floating-rate loans. The fund targets income generation while managing interest rate risk, appealing to investors seeking yield in a rising rate environment.
FIV generates revenue primarily through interest income from its portfolio of senior floating-rate loans, which are typically secured by the borrower's assets. The fund's pricing power is derived from its ability to adjust interest rates in response to market conditions, providing a hedge against rising rates.
Changes in interest rates impacting floating-rate loan yields
Credit quality of the underlying loan portfolio
Market demand for floating-rate securities
Investor sentiment towards closed-end funds
Regulatory changes affecting the lending landscape
Economic downturns impacting borrower credit quality
Increased competition from other floating-rate funds
Potential for lower yields as more capital flows into the floating-rate market
Interest rate risk associated with floating-rate loans
Liquidity risk if market conditions deteriorate
moderate - The fund's performance is somewhat linked to economic cycles as credit quality and demand for loans can fluctuate with economic conditions.
The fund is highly sensitive to interest rate changes; rising rates typically enhance the yields on floating-rate loans, positively impacting income and distributions.
minimal - The fund primarily invests in senior secured loans, which are less sensitive to credit market fluctuations compared to unsecured debt.
income - The fund appeals to income-focused investors seeking yield in a rising interest rate environment.
moderate - The fund exhibits moderate volatility due to its exposure to credit risk and interest rate fluctuations.