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Post by Deleted on Feb 21, 2021 2:59:17 GMT
i just watched a market watch video in which Sebastien Page, head of T Row Price Multi asset division, recommended Bank Loans. So far I have never owned or even thought of owing bank loans.
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Post by racqueteer on Feb 21, 2021 3:12:16 GMT
i just watched a market watch video in which Sebastien Page, head of T Row Price Multi asset division, recommended Bank Loans. So far I have never owned or even thought of owing bank loans. Probably a stupid question, but aren't mortgages usually long-term 'bank loans'? Clearly, mortgages don't HAVE to be from banks per se, but a lot (mostly all?) of them ARE.
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Post by yogibearbull on Feb 21, 2021 3:24:05 GMT
i just watched a market watch video in which Sebastien Page, head of T Row Price Multi asset division, recommended Bank Loans. So far I have never owned or even thought of owing bank loans. Probably a stupid question, but aren't mortgages usually long-term 'bank loans'? Clearly, mortgages don't HAVE to be from banks per se, but a lot (mostly all?) of them ARE. Bank loans mean loans from banks to lower-rated companies that cannot tap the bond market. Many have floating rates that reset periodically. So, the term floating-rate/bank-loans [FR/BL] is used. There are funds [OEF, ETF, CEF] in this area. Mortgages are not referred in this way but they have their own alphabet soup - RMBS, CMBS, etc.
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Post by Deleted on Feb 21, 2021 3:39:50 GMT
He mentioned bank loans reset every 7? or so days. So they go up with rising interest rate. Are high up in something (did not catch that part) but I think company will pay it before paying other creditors so lower risk.
There are bank loan funds and etfs but they are like 3% returns.
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Post by chang on Feb 21, 2021 5:07:27 GMT
Probably a stupid question, but aren't mortgages usually long-term 'bank loans'? Clearly, mortgages don't HAVE to be from banks per se, but a lot (mostly all?) of them ARE. Bank loans mean loans from banks to lower-rated companies that cannot tap the bond market. Many have floating rates that reset periodically. So, the term floating-rate/bank-loans [FR/BL] is used. There are funds [OEF, ETF, CEF] in this area. Mortgages are not referred in this way but they have their own alphabet soup - RMBS, CMBS, etc. To add to the confusion, some FR/BL funds are called "Senior Loan" funds.
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