FYI: Last week, I found myself engaged in a somewhat complicated exercise to determine the risk levels of various bank-loan funds. (Bank-loan funds, sometimes called senior-loan or floating-rate funds, are a lower-quality bond-fund type; they're perhaps not quite as risky as junk-bond funds but definitely riskier than high-quality bond funds.) I wanted to replace one of the bank-loan exchange-traded funds in my model portfolios with another fund, preferably a lower-risk option given the current spot in the economic and credit cycle.
Regards,
Ted
