After Brexit, there is an opportunity investors should consider buying senior bank loans. The vehicle of choice is a closed end fund that trades under the symbol VVR. There is already an 8% allocation to VVR in the Lower Risk Model Portfolio. Now we are adding a 5% allocation to VVR in the Low Risk Model Portfolio.
Here are the key points of this call.
- Senior bank loans are often more secure than many bonds issued by a company.
- It is important to buy a diversified portfolio of senior bank notes.