Credit Stress Panic? No, at least not yet!
A friend shared a viral X post claiming we just saw the biggest exodus in the leveraged loan space — and they’re right on the numbers:
• $6.5 billion pulled from US leveraged-loan funds in just a week
• $1.4 billion from
BKLN alone — the largest outflow in its 13-year history
• $9.6 billion also left high-yield bond funds — the most in nearly two decades
But here’s the thing... dollar flows can be misleading without context.
What isBKLN?
BKLN is the Invesco Senior Loan ETF. It tracks floating-rate loans made to riskier corporations — offering higher yields tied to interest rates. These are popular in rising-rate environments… until credit stress kicks in.
So what’s the chart saying?
Despite the outflows, price just bounced off a key historical support level: $20.31.
This zone has been tested before:
• 2018: Fed tightening – sharp but contained
• 2020: Covid crash – full panic
• 2022: Banking mini-crisis – 💥 and Bitcoin pumped from here 💰🟧…
Now in 2025, we’re seeing the biggest dollar outflow… but not the worst price action.
Perspective check:
The fund is much larger now. $1.4B today ≠ $1.4B in 2018. This move isn’t the apocalypse — not yet.
Final Takeaway:
If $20.31 holds, this may be just another macro shakeout.
Break that, and we enter “panic mode” — but we’re not there yet. (Thank God that Tradingview alerts exist. It's ON)
Watchlist:
•BKLN – key support zone
•
HYG / 
JNK – junk bonds under pressure
•TLT – treasuries getting love
•
BTC – does it act as safe haven again?
One Love,
The FXPROFESSOR 💙
A friend shared a viral X post claiming we just saw the biggest exodus in the leveraged loan space — and they’re right on the numbers:
• $6.5 billion pulled from US leveraged-loan funds in just a week
• $1.4 billion from
BKLN alone — the largest outflow in its 13-year history • $9.6 billion also left high-yield bond funds — the most in nearly two decades
But here’s the thing... dollar flows can be misleading without context.
What is
BKLN? BKLN is the Invesco Senior Loan ETF. It tracks floating-rate loans made to riskier corporations — offering higher yields tied to interest rates. These are popular in rising-rate environments… until credit stress kicks in.So what’s the chart saying?
Despite the outflows, price just bounced off a key historical support level: $20.31.
This zone has been tested before:
• 2018: Fed tightening – sharp but contained
• 2020: Covid crash – full panic
• 2022: Banking mini-crisis – 💥 and Bitcoin pumped from here 💰🟧…
Now in 2025, we’re seeing the biggest dollar outflow… but not the worst price action.
Perspective check:
The fund is much larger now. $1.4B today ≠ $1.4B in 2018. This move isn’t the apocalypse — not yet.
Final Takeaway:
If $20.31 holds, this may be just another macro shakeout.
Break that, and we enter “panic mode” — but we’re not there yet. (Thank God that Tradingview alerts exist. It's ON)
Watchlist:
•
BKLN – key support zone •
HYG / JNK – junk bonds under pressure •
TLT – treasuries getting love •
BTC – does it act as safe haven again?One Love,
The FXPROFESSOR 💙
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📣 Professor's Public Telegram:
💬 t.me/fxprofessor88
🌍🚀 CryptoGPT Trading Agent is the Future:
cryptogpt.io/
💹 Join My Forex Community:
fxprofessor.com/forex-special
💬 t.me/fxprofessor88
🌍🚀 CryptoGPT Trading Agent is the Future:
cryptogpt.io/
💹 Join My Forex Community:
fxprofessor.com/forex-special
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.