Floating Rate Sector Update | Rates Are Rising Which Should Sign A Light On The Sector

Summary

• Floating rate ("loan") securities have been out-of-favor for more than a year as investors saw interest rates plummet.

• The loan market looks very compelling relative to high yield fixed coupon bonds.  The avg price is below par vs. a premium to par for bonds.

• In addition, we capture a double-discount with loan CEFs as the funds are cheap relative t…