Unlock High Yields: How Regular Investors Can Access Bank Loan Market

• Regular investors can access the lucrative bank loan market, also known as senior or syndicated loans, through ETFs or mutual funds, as direct purchase is not possible.
• These underlying debt instruments are issued by well-known companies, often considered below investment grade, and typically feature floating interest rates tied to SOFR.
• The market offers numerous choices, with 16 bank loan ETFs and many mutual funds available, including recent launches of actively managed funds.
• Bank loans provide high levels of income and have shown strong performance, with the Invesco Senior Loan ETF (BKLN) being the largest with a 5.88% 30-day SEC yield.
• Investors should research fees and past performance, and specifically look for funds categorized as 'bank loan' or 'senior loan' to ensure they are investing in the correct asset class.