What Leveraged-Loan Outflows Suggest About Credit Markets

What Leveraged-Loan Outflows Suggest About Credit Markets

Assessment

Interactive Video

Business

University

Hard

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The video discusses the recent trends in credit markets, focusing on the significant outflows from the BKLN leveraged loan ETF. It highlights the performance of loans and junk bonds, noting that loans have outperformed despite recent outflows. The video also analyzes the underperformance of the ETF compared to the S&P index, raising concerns about its performance in a down market and the potential for a fire sale.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the widening divergence between the ETF and the S&P index indicate?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What implications might a fire sale have on the credit markets as suggested in the text?

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