SPDR® Blackstone / GSO Senior Loan ETF
U.S. Bancorp’s (USB) revenue net of interest expense grew 5% and 4% in 2016 and 2017, respectively.
Company & Industry Overviews
Senior loans offer floating rate coupons and have low interest rate sensitivity. They provide the perfect hedge for rising interest rate environments.
Another major transaction in the week ending June 20, was Shearer Food’s $515 million, two-tranche covenant-lite loan.
Last week, the total number of deals in the leveraged loans (BKLN) space went up to 16, from ten the previous week.
The Treasury’s newest issuance of floating rate notes, or FRNs, on January 29, commanded immense investor interest. The $15 billion issue received bids for 5.67 times the issue amount.
With the taper pushed off until 2014, bond funds might be a good intermediate play. Interest rates are still historically low, so investing in bonds is risky long-term.