The Concealed Risks of Financial Loan Funds. Retail investors are pouring cash into “bank loan” funds at accurate documentation rate, while the longterm implications are cringe worthy.
The rationale and popularity for investor interest has some merit, but just at first glance. The thinking goes that rates of interest continue to be at historically lower levels, and investors are reticent to battle rate of interest danger in the shape of longer duration bonds.
Loans from banks, commonly known as drifting price funds, are seen by numerous investors as supplying a modest income source while being generally speaking without any interest danger.Details