Invesco Senior Income Trust

Invesco Senior Income Trust

Invesco Senior Income Trust launched in 1998 as a closed-end fund designed to deliver high current income by investing primarily in senior secured floating-rate loans, also known as bank loans or leveraged loans. The fund is managed by Invesco Advisers, Inc., an arm of Invesco Ltd., the global asset manager headquartered in Atlanta, Georgia. Day-to-day portfolio decisions sit with senior portfolio managers Scott Baskind and Annette Lege, who also oversee Invesco’s broader floating-rate loan platform. The vehicle trades on the New York Stock Exchange under the ticker VVR, subjecting its price to the premiums and discounts typical of the closed-end fund structure. The strategy concentrates on first-lien, senior secured loans issued by U.S. corporations rated below investment grade. The portfolio typically spans 200 to 300 distinct borrower names, diversified across sectors to limit single-name and industry concentration. Holdings include loans to companies such as PetSmart, TransDigm, and Asurion (per the firm's public filings, 2024). The floating-rate coupon structure resets periodically against a base rate like SOFR, insulating income distributions from rising short-term interest rates — a differentiator from fixed-rate bond funds. The fund also holds a modest allocation to second-lien and subordinated loans, and occasionally participates in primary loan syndications alongside other institutional lenders. The fund’s total net assets stood at approximately $800 million as of its most recent semi-annual report (per the firm, 2024). It maintains a managed distribution policy targeting a level monthly payout, funded from net investment income and, when necessary, capital gains or return of capital. Invesco’s broader senior loan team operates across U.S. and European credit markets, though this specific vehicle focuses on the U.S. middle-market and broadly syndicated loan segments. The structural differentiator is the closed-end fund architecture itself. Unlike open-end bank-loan mutual funds or ETFs, a closed-end fund does not issue or redeem shares daily based on investor flows. This permanent-capital structure allows the portfolio managers to hold through a default cycle without becoming a forced seller into illiquid markets. It also permits the fund to invest modestly in less-liquid loan tranches that open-end managers must avoid. The trade-off — a share price determined by market demand rather than net asset value — creates occasional buying opportunities when the fund trades at a discount to NAV.