FLOT: 5% Yielding Floating Rate Fund, Appropriate For 2023

Binary Tree Analytics
5.15K Followers

Summary

  • The iShares Floating Rate Bond ETF is an investment grade, floating rate, corporate bond fund.
  • The vehicle has a 0.06 years duration and a 5% 30-day SEC yield.
  • The vehicle is composed of investment-grade bonds only and is overweight 'A' credits.
  • The fund has an extremely shallow draw-down profile, which clocked in only -1.8% in 2022.

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Thesis

The iShares Floating Rate Bond ETF (BATS:FLOT) is an investment grade corporate bond fund. The vehicle invests only in floating rate bonds with a fairly short duration profile. The nature of the underlying collateral yields a very short duration

This article was written by

5.15K Followers
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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