I'm a retiree looking for income. I've been watching the bank loan funds for some time and think they look interesting. I realize they are simlar to junk bonds in some ways but they have a senior status reducing the risk. They are also adjustable rate, removing interest rate risk, which could be either a good or bad thing. Many of the funds are trading at recent or even all time lows (the open end mutual funds). Yields vary from about 6.5 to almost 10%.
Can anyone help me understand the risk and enlighten me with why they are near all time lows? Even junk bonds have turned up some lately. Am I naive about the risk?
Thanks in advance!
Can anyone help me understand the risk and enlighten me with why they are near all time lows? Even junk bonds have turned up some lately. Am I naive about the risk?
Thanks in advance!
Last edited: