How safe are senior loan funds and how will this downturn effect them?

Answer 1

I don't know what you mean "senior Loan Funds"

But I have read that a lot of below investment grade Mortgages, have been "Packaged" and sold as Investment grade funds.
When the US housing market really shakes out (you ain't seen nothin yet) there will be a lot of defaults on these funds.

So if your Funds are Mortgage backed securities,on residential real estate , SELL, SELL, SELL