AFT / Rising Interest Rates Got You Down? Try Floating Above The Fear

Floating rate securities have strong yields, low duration, and have significantly outperformed YTD. There are several strong floating rate funds avail more_horizontal

Interest rates are likely to remain elevated due to the strong U.S. economy, despite inflation concerns. The U.S. debt has reached a record high, and more_horizontal

Senior loans offer some of the highest yields in the market today. AFT is a particularly strong senior loan CEF, with a growing 11.5% yield, and large more_horizontal

Apollo Senior Floating Rate Fund focuses on senior secured leveraged loans, with a portfolio mainly consisting of single 'B' rated collateral. The fun more_horizontal

Fidgety credit markets have knocked down prices on healthy performing senior corporate loans, as well as many other credit asset classes. Wrap those l more_horizontal

We review CEF market valuation and performance through the fourth week of March and highlight recent market action. CEFs were relatively flat on the w more_horizontal

The AFT fund primarily invests in senior secured loans. The fund pays an attractive 10.2% distribution that is fully funded by NII. more_horizontal

AFT is at an attractive and compelling deep discount. However, it lags peers, so the larger discount could be warranted if, in the future, the weaker more_horizontal