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BKLN Fund Description
The PowerShares Senior Loan Portfolio tracks a market-value-weighted index of senior loans issued by banks to corporations.
BKLN FactSet Analytics Insight
BKLN offers a liquid way to earn higher yield
“the bulk of BKLN's portfolio is below investment grade” with less interest rate risk but significantly higher credit risk. The fund’s index tracks the 100 largest bank loan facilities—floating-rate, high-yield senior debt issued by banks to companies. Bank loans offer relative safety from interest rate risk because the coupons are reset periodically, but they do take significant credit risk. In fact, the bulk of BKLN’s portfolio is below investment grade and debt from firms in bankruptcy is not ruled out either. While the floating rate feature greatly reduces sensitivity to changes in interest rates, it doesn’t eliminate it. A spike in interest rates makes it harder for issuers to service their debt, potentially raising default risk.
With first-mover advantage in its segment, BKLN has gathered billions in AUM. BKLN trades extremely well in retail quantities. This is especially impressive considering the relative illiquidity and high trading costs of the underlying securities. Still, underlying liquidity—for all bank loan funds—remains a concern for larger investors and when the market sells off.
BKLN Top 10 Countries View All
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BKLN Top 10 Holdings
BKLN Summary Data
BKLN Portfolio Data
BKLN Index Data
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BKLN Portfolio Management
BKLN Tax Exposures
BKLN Fund Structure
BKLN FactSet Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of BKLN. BKLN is rated a 5 out of 5.