SPDR Blackstone Senior Loan ETF (SRLN)

Overview

The fund aims to exceed the performance of both the Markit iBoxx USD Liquid Leveraged Loan Index and the Morningstar LSTA U.S. Leveraged Loan 100 Index. It intends to achieve this by primarily investing a minimum of 80% of its net assets, alongside any borrowings for investment purposes, in Senior Loans. These are defined specifically as first lien senior secured floating rate bank loans. Such investments target higher ranks within the borrower's capital structure, potentially offering greater security compared to other forms of debt. The fund's strategy focuses on leveraging the fluctuating interest rate environment to maximize returns for investors through investments in these floating rate instruments.

Products and Services

• Senior Loans Investment

The fund dedicates at least 80% of its financial resources, plus any additional borrowed funds, to investing in Senior Loans. Senior Loans, as defined within the fund's investment criteria, refer to first lien senior secured floating rate bank loans. These instruments are typically secured by specific assets or revenues of the borrowing company and are prioritized over other types of debt in terms of repayment during default scenarios. The focus on Senior Loans aims to exploit their floating interest rates, which can adjust in response to market changes, thereby providing a hedge against inflation and a potential for higher yields in rising rate environments.