---
title: "Floating rate loans sounded safe until the Fed started cutting rates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/290231646.md"
description: "The Invesco Senior Loan ETF (BKLN) has seen its monthly distributions drop approximately 40% since September 2024, falling from $0.17 to $0.10 per share, due to Federal Reserve rate cuts reducing floating-rate yields. While income for investors has compressed, the fund's net asset value remains relatively stable, delivering a 5% total return over the past year. The article notes that while credit risk appears contained, BKLN is suitable only for those accepting variable yields tied to Fed policy."
datetime: "2026-06-18T17:25:38.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/290231646.md)
  - [en](https://longbridge.com/en/news/290231646.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/290231646.md)
generator: "portal-rs"
---

# Floating rate loans sounded safe until the Fed started cutting rates

Quick ReadBKLN's monthly payouts fell 40%, from $0.17 to $0.10 per share, as Fed rate cuts compressed the floating-rate loan coupons investors once counted on.Despite shrinking income, BKLN delivered roughly 5% total return over the past year and 29% over five years, with NAV essentially preserved.Are you ahead, or behind on retirement? SmartAsset'...

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**