Senior loans — which are also referred to as syndicated loans, floating rate loans or bank loans — typically have floating interest rates tied to the Secured Overnight Financing Rate (SOFR).
Here are the five reasons Nuveen said it is bullish on senior loans.
He believes the best way to access senior loans is through an open-end, daily-liquidity mutual fund, like the Nuveen Floating Rate Income Fund.
NFRIX 1Y mountain Nuveen Floating Rate Income Fund Senior loans can make up anywhere from 5% to 15% of your overall fixed-income exposure, he said.
Facet Wealth's Graff said senior loans can take the place of some of a portfolio's high-yield allocation.
Persons:
Burger, Nuveen, Scott Caraher, we're, Caraher, Sharpe, They've, Rowe, Tom Graff, Graff, Nuveen's Caraher
Organizations:
American Airlines, Brands, Bloomberg U.S, Federal Reserve, Morningstar, U.S, Bloomberg, Institutional, SEC, CLOs
Locations:
U.S