Investment Q&A

Q: SRLN looks unsafe at first glance. the yield at over 8% p.a. looks high. Morningstar gives SRLN a neutral rating (forward looking) and 2 stars looking backward. Morningstar is often out of date, and there is better information at ETF.com. Your Bloomberg is not available to us commoners.

I ask this this question because bank-owned brokers make it difficult and/or expensive to buy bonds. Information and pricing on bonds are not easily searchable. Every time I force myself to look at asset allocation, the robotic tools I use scream at me that I am mad in that I zero fixed income. This brought me to look at bond ETFs and I acquired some USHY which looked decent, but that doesn’t quieten those pesky AI tools that help self-directed investors.

Is SRLN a reasonable enough proxy to add to the fixed income part of one’s portfolio? Or is it risky compared to other available US$ bond ETFs? I’d welcome substance in your response and if you care to add links to materials that pedestrian investors like me should look at, that could help. Many thanks.

Q: I just came across this quote within an Economist article:

“If you can earn 12%, maybe 13%, on a really good day in senior secured bank debt, what else do you want to do in life?” Steve Schwarzman, boss of Blackstone, a private-investment firm, recently asked.

Are there any bank bonds that you could suggest that would fit in this category?

Q: Hi 5i,
if one was interested in getting exposure to the US or Canadian High Yield Bond market would you lean toward active management or a passive index ETF? I would appreciate some suggestions to further research for both US and Canada markets.

Q: Hi 5i, need some help picking and also diversifying in the Senior Loan ETFs space. Can you help with naming a few that are appropriate for someone about to retire.
Many thanks!

Q: Good Day

I hold some in my RRIF and was thinking of adding more as it has held up well through the last year and yields around 6% US$. what percent range do you feel is reasonable for senior loans in a RRIF as a higher risk bond proxy
Thanks for your opinion

Q: I own a small amount of FSL for revenue. I think they invest mostly in the US. They merged recently with FSD, unknown to me. The stock didn’t do much in the last few years and is illiquid. There are some other ETF and funds dealing with « senior loans ». Could you explain what they are and if they are worthed for income/diversification purposes. I also own PSB (laddered) and XSB (short-term) on the canadian side. If appropriate, would you suggest something for income in the US to replace FSL, if possible a canadian-listed ETF or fund. Thanks.

Q: My question involves whether to sell Xhy to buy more bkln making about 3% of my RRIF , as higher risk income. My understanding is that senior loans are less risky should the economy slow but still provide a good dividend. Is ther an alternative senior bond etf which you would prefer?
Thanks for your insight.