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Invesco Senior Loan ETF (NYSEARCA:BKLN) is an income ETF I covered in December, rating it a Hold, as I cautiously awaited more rate cuts in 2025.
With the share prices mostly unchanged since I covered it then (April's Liberation
BKLN: Not A Buy Ahead Of Likely Rate Cuts
Summary
- Invesco Senior Loan ETF remains a Hold as I anticipate imminent Fed rate cuts, which will likely reduce future income from floating rate loans.
- Distributions have declined in line with expectations, reflecting the impact of 2024's rate cuts and portfolio turnover, though recent payments have rebounded slightly.
- The portfolio's credit quality is stable, but maturities have shifted longer, and most holdings yield in the mid-to-upper single digits.
- With yields likely to fall to 5-6% beyond 2025, I see better income opportunities elsewhere and do not recommend building a position now.
I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.
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