First Trust Advisors L.P. ("FTA") announced today that its
Leveraged Finance Investment Team, portfolio manager for First
Trust Senior Floating Rate Income Fund II (NYSE: FCT) and First
Trust High Yield Opportunities 2027 Term Fund (NYSE: FTHY) (each a
"Fund" or collectively, the "Funds"), will release an update on the
market and the Funds for financial professionals and investors. To
listen to the update, click on the following link:
FCT & FTHY Replay 11/15/2023
The update will be available Wednesday, November 15, 2023, at
5:00 P.M. Eastern Time until 11:59 P.M. Eastern Time on Friday,
December 15, 2023
FCT is a diversified, closed-end management investment company.
The Fund's primary investment objective is to seek a high level of
current income. As a secondary objective, the Fund attempts to
preserve capital. The Fund pursues these investment objectives by
investing primarily in senior secured floating-rate corporate
loans. Under normal market conditions, the Fund will invest at
least 80% of its Managed Assets in lower grade debt
instruments.
FTHY is a diversified, closed-end management investment company.
The Fund's investment objective is to provide current income. Under
normal market conditions, the Fund will seek to achieve its
investment objective by investing at least 80% of its managed
assets in high yield debt securities of any maturity that are rated
below investment grade at the time of purchase or unrated
securities determined by First Trust Advisors L.P. ("FTA") to be of
comparable quality. High yield debt securities include U.S. and
non-U.S. corporate debt obligations and senior, secured floating
rate loans ("Senior Loans"). Securities rated below investment
grade are commonly referred to as "junk" or "high yield" securities
and are considered speculative with respect to the issuer's
capacity to pay interest and repay principal. There can be no
assurance that the Fund will achieve its investment objective or
that the Fund's investment strategies will be successful.
FTA is a federally registered investment advisor and serves as
the Fund's investment advisor. FTA and its affiliate First Trust
Portfolios L.P. ("FTP"), a FINRA registered broker-dealer, are
privately-held companies that provide a variety of investment
services. FTA has collective assets under management or supervision
of approximately $187 billion as of October 31, 2023 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual
funds and separate managed accounts. FTA is the supervisor of the
First Trust unit investment trusts, while FTP is the sponsor. FTP
is also a distributor of mutual fund shares and exchange-traded
fund creation units. FTA and FTP are based in Wheaton,
Illinois.
Principal Risk Factors: Risks are inherent in all investing.
Certain risks that may be applicable to a fund are identified below
but not all of the material risks relevant to each fund are
included below and not all of the risks below apply to each fund.
The material risks of investing in each fund are spelled out in its
prospectus, statement of additional information and other
regulatory filings. The order of the below risk factors does not
indicate the significance of any particular risk factor.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Funds will
fluctuate. Shares, when sold, may be worth more or less than their
original cost. There can be no assurance that the Funds’ investment
objectives will be achieved. The Funds may not be appropriate for
all investors.
Market risk is the risk that a particular security, or shares of
a fund in general may fall in value. Securities are subject to
market fluctuations caused by such factors as general economic
conditions, political events, regulatory or market developments,
changes in interest rates and perceived trends in securities
prices. Shares of a fund could decline in value or underperform
other investments as a result. In addition, local, regional or
global events such as war, acts of terrorism, spread of infectious
disease or other public health issues, recessions, natural
disasters or other events could have significant negative impact on
a fund.
Current market conditions risk is the risk that a particular
investment, or shares of the fund in general, may fall in value due
to current market conditions. As a means to fight inflation, the
Federal Reserve and certain foreign central banks have raised
interest rates and expect to continue to do so, and the Federal
Reserve has announced that it intends to reverse previously
implemented quantitative easing. Recent and potential future bank
failures could result in disruption to the broader banking industry
or markets generally and reduce confidence in financial
institutions and the economy as a whole, which may also heighten
market volatility and reduce liquidity. In February 2022, Russia
invaded Ukraine which has caused and could continue to cause
significant market disruptions and volatility within the markets in
Russia, Europe, and the United States. The hostilities and
sanctions resulting from those hostilities have and could continue
to have a significant impact on certain fund investments as well as
fund performance and liquidity. The COVID-19 global pandemic, or
any future public health crisis, and the ensuing policies enacted
by governments and central banks have caused and may continue to
cause significant volatility and uncertainty in global financial
markets, negatively impacting global growth prospects.
The Funds will typically invest in senior loans rated below
investment grade, which are commonly referred to as "junk" or
"high-yield" securities and considered speculative because of the
credit risk of their issuers. Such issuers are more likely than
investment grade issuers to default on their payments of interest
and principal owed to the Funds, and such defaults could reduce the
Funds’ NAV and income distributions. An economic downturn would
generally lead to a higher non-payment rate, and a senior loan may
lose significant market value before a default occurs. Moreover,
any specific collateral used to secure a senior loan may decline in
value or become illiquid, which would adversely affect the senior
loan's value.
The debt securities in which a fund invests are subject to
certain risks, including issuer risk, reinvestment risk, prepayment
risk, credit risk, liquidity risk and interest rate risk. Issuer
risk is the risk that the value of fixed-income securities may
decline for a number of reasons which directly relate to the
issuer. Reinvestment risk is the risk that income from a fund's
portfolio will decline if a fund invests the proceeds from matured,
traded or called bonds at market interest rates that are below a
fund portfolio's current earnings rate. Prepayment risk is the risk
that, upon a prepayment, the actual outstanding debt on which a
fund derives interest income will be reduced. Credit risk is the
risk that an issuer of a security will be unable or unwilling to
make dividend, interest and/or principal payments when due and that
the value of a security may decline as a result. Interest rate risk
is the risk that fixed-income securities will decline in value
because of changes in market interest rates.
The senior loan market has seen an increase in loans with weaker
lender protections which may impact recovery values and/or trading
levels in the future. The absence of financial maintenance
covenants in a loan agreement generally means that the lender may
not be able to declare a default if financial performance
deteriorates. This may hinder a Fund's ability to reprice credit
risk associated with a particular borrower and reduce a Fund's
ability to restructure a problematic loan and mitigate potential
loss. As a result, a Fund's exposure to losses on investments in
senior loans may be increased, especially during a downturn in the
credit cycle or changes in market or economic conditions.
The London Interbank Offered Rate ("LIBOR") has ceased to be
made available as a reference rate. Any potential effects of the
transition away from LIBOR on a fund or on certain instruments in
which a fund invests is difficult to predict and could result in
losses to a fund. The unavailability or replacement of LIBOR may
affect the value, liquidity or return on certain fund investments
and may result in costs incurred in connection with closing out
positions and entering into new trades.
A second lien loan may have a claim on the same collateral pool
as the first lien or it may be secured by a separate set of assets.
Second lien loans are typically secured by a second priority
security interest or lien on specified collateral securing the
Borrower's obligation under the interest. Because second lien loans
are second to first lien loans, they present a greater degree of
investment risk. Specifically, these loans are subject to the
additional risk that the cash flow of the Borrower and property
securing the loan may be insufficient to meet scheduled payments
after giving effect to those loans with a higher priority. In
addition, loans that have a lower than first lien priority on
collateral of the Borrower generally have greater price volatility
than those loans with a higher priority and may be less liquid.
In the event a borrower fails to pay scheduled interest or
principal payments on a senior loan held by a fund, a fund will
experience a reduction in its income and a decline in the value of
the senior loan, which will likely reduce dividends and lead to a
decline in the net asset value of a fund's common shares. If a fund
acquires a senior loan from another lender, for example, by
acquiring a participation, a fund may also be subject to credit
risks with respect to that lender. Although senior loans may be
secured by specific collateral, the value of the collateral may not
equal a fund's investment when the senior loan is acquired or may
decline below the principal amount of the senior loan subsequent to
a fund's investment. Also, to the extent that collateral consists
of stock of the borrower or its subsidiaries or affiliates, a fund
bears the risk that the stock may decline in value, be relatively
illiquid, and/or may lose all or substantially all of its value,
causing the senior loan to be under collateralized. Therefore, the
liquidation of the collateral underlying a senior loan may not
satisfy the issuer's obligation to a Fund in the event of
non-payment of scheduled interest or principal, and the collateral
may not be readily liquidated.
Distressed securities frequently do not produce income while
they are outstanding. A fund may be required to incur certain
extraordinary expenses in order to protect and recover its
investment. A fund also will be subject to significant uncertainty
as to when and in what manner and for what value the obligations
evidenced by the distressed securities will eventually be
satisfied.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
A Fund's portfolio is also subject to credit risk, interest rate
risk, liquidity risk, prepayment risk and reinvestment risk.
Interest rate risk is the risk that fixed-income securities will
decline in value because of changes in market interest rates.
Credit risk is the risk that an issuer of a security will be unable
or unwilling to make dividend, interest and/or principal payments
when due and that the value of a security may decline as a result.
Credit risk may be heightened for a Fund because it invests in
below investment grade securities. Liquidity risk is the risk that
the fund may have difficulty disposing of senior loans if it seeks
to repay debt, pay dividends or expenses, or take advantage of a
new investment opportunity. Prepayment risk is the risk that, upon
a prepayment, the actual outstanding debt on which a Fund derives
interest income will be reduced. A Fund may not be able to reinvest
the proceeds received on terms as favorable as the prepaid loan.
Reinvestment risk is the risk that income from a Fund's portfolio
will decline if a Fund invests the proceeds from matured, traded or
called instruments at market interest rates that are below a Fund's
portfolio's current earnings rate.
The risks of investing in the Funds are spelled out in the
shareholder reports and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
The Funds’ daily closing New York Stock Exchange price and net
asset value per share as well as other information can be found at
www.ftportfolios.com or by calling 1-800-988-5891.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231113897327/en/
JEFF MARGOLIN — (630) 915-6784
First Trust Senior Float... (NYSE:FCT)
過去 株価チャート
から 11 2024 まで 12 2024
First Trust Senior Float... (NYSE:FCT)
過去 株価チャート
から 12 2023 まで 12 2024
