July 16, 2021
Demand for loan ETFs ‘skyrockets’ as inflation worries intensify
By admin | |
Demand for exchange traded funds investing in senior loans has rocketed this year as investors hunt for respite from rising inflation. A net $7.3bn has been pumped into the sector so far this year. The trend is linked to rising inflation and interest rate expectations in the US and elsewhere, leading investors to favour floating-rate loans over fixed-rate bonds.