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The Summertime Case for Floating Rate Notes (FRNs) May 25, 2021 Floating rate notes (FRNs) and related debt gain allure as interest rates rise, confirming a 2021 catalyst for assets like the While broad demand for high-yield corporate bond mutual funds has been tepid this year, investors are piling into leveraged loan equivalents. On the ETF side of the ledger, BKLN is benefiting from that trend, as highlighted by $1.87 billion of year-to-date inflows as of May 24. Nearly $788 million of that tally arrived in the current quarter. “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,” says Morningstar analyst Garrett Heine. ....