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…
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