Invesco Senior Loan ETF [BKLN] Stock Forecast

While 2022 is not finished, two things are quite likely to be a fact in early 2023.

As investors continue their search for yield, ETFs that track senior bank loans are seeing increased attention. The Invesco Senior Loan ETF (BKLN), which follows the market-weighted performance of the 100 largest senior bank loans, has seen a recent surge in inflows.

As the Federal Reserve raised interest rates to combat inflation, NorthCoast Asset Management found opportunity in bond ETFs during the third quarter.

The BKLN ETF gives investors a convenient way to gain exposure to floating rate senior loans. The fund pays a moderately high distribution yield of 3.7% that has been rising in recent months.

As big money managers quietly step back into the high-yield debt market following a steep sell-off this year, investors can also begin to take a second look at attractively priced speculative-grade bond exchange traded funds. For instance, BlackRock Inc. and KKR & Co. Inc.

BKLN is the most popular senior loan / variable rate loan ETF in the market. BKLN's holdings see higher interest rate payments as rates rise, a significant benefit for shareholders, and particularly important in a rising rates environment.

Short-term, high-yield fixed income has been a popular way to play the bond market this year. BKLN is a 2022 outperformer in a year of huge fixed-income losses.

The Federal Reserve is two increases into its interest rate tightening cycle, and more — perhaps much, much more — could be on the way with inflation remaining high. As such, fixed income investors are feeling considerable pain.

These ETFs could be useful if interest rates continue to increase.

Demand for actively managed senior loan ETFs has skyrocketed in the past year, helping State Street Global Advisors and First Trust fill their coffers. Indeed, the two firms have pulled nearly $9 billion combined into these less interest rate-sensitive, yet higher-yielding fixed income securities.

Invesco Senior Loan ETF is a US stock and trading under the symbol BKLN

Invesco Senior Loan ETF stock price is $20.7804 today.

Yes, Invesco Senior Loan ETF is a publicly traded company.