PowerShares plans leveraged loan ETF

The provider says its ETF is the first to offer access to senior loans - also called leveraged, syndicated, bank or floating rate - a type of corporate debt often used to finance buyouts, mergers and acquisitions as well as stock repurchasing. Senior loans are prioritised before the claims of other creditors and are repaid first, as well as typically being collateralised by specific assets such as property. Invesco PowerShares says this superior level of security gives senior loans a higher rate of recovery in the event of default. Another benefit of these bonds is their historically...