SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : High Yield Investing - CEF's
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: pichonbaron who wrote (163)3/22/2022 7:16:10 PM
From: chowder1 Recommendation

Recommended By
red cardinal

   of 245
 
Re: JRO - Leverage

Good question. I expect the floating rate funds to perform in an environment of rising interest rates. Thus, since this sector is expected to do well, I want to use leverage in an up cycle and sell it in a down cycle.

A number of bond funds won't perform well with higher interest rates so I wanted to de-leverage in that situation but floating loans should rise in that economic environment so I want the benefit of leverage with those type of assets.

I also purchased a few BDC's who have a lot of exposure to floating rate debt, they are ARCC, HTGC and OCSL.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News