In a fast changing environment, FRNs are an increasingly attractive asset class, as they allow investors to reduce the sensitivity to interest rates fluctuations and to capture some potential yield.
Over the last 30 years, interest rates have been decreasing. This cycle now seems to have come to an end, as shown by the recent hike following the US presidential elections. What is at stake for investors now is the need to find solutions that will help generate yield and take advantage of this upcoming hike in rates without increasing risk.
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