Page 8 - Kevin Nielsen News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Bank-loan funds lacked investor appeal in 2019 and 2020 as interest rates fell. But economic recovery and the potential for rising short-term interest rates have put the category back in favor in 2021. Bank-loan mutual funds have received net inflows of more than $13 billion for the year to date through April 2021, which was almost a fourth of the category’s assets at the beginning of the year. Demand for high-yield bond funds has been milder this year despite the similarities of the two asset classes. While high-yield bonds have greater upside potential, bank loans defensive characteristics make them an attractive portfolio diversifier. Bank loans’ unique floating-rate feature, their hierarchy in the capital structure, and the loan market’s industry composition all make for an appealing relative value opportunity versus high-yield bonds.

Paul massaroEric mollenhauerKevin nielsenMorningstar categoryYield bond indexRowe price floating rateMorningstar analyst ratingFidelity floating rate high incomeபால் மாசரோகெவின் நீல்சன்காலை நட்சத்திரம் வகைமகசூல் பத்திரம் குறியீட்டுகாலை நட்சத்திரம் ஆய்வாளர் ரேடிஂக்நம்பகத்தன்மை மிதக்கும் ரேட் உயர் வருமானம்