Floating-Rate Loan

For income-seeking investors, the landscape is changing. With the Federal Reserve consistently raising interest rates, bond yields have increased over the past year, though prices have not followed suit. In these unusual times, leveraged loans, also known as floating-rate loans, have emerged as an attractive alternative, even beating traditional bonds. Let’s explore why this phenomenon is happening and how floating-rate loans could be a viable investment option for the future. Rising Interest Rates and Bonds: A Dichotomy As the Federal Reserve continues to grapple with high inflation, interest rates are…