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Fidelity Floating rate income FFRHX to benefit from the coming interest rate rise
Fidelity Floating rate income FFRHX to benefit from the coming interest rate rise but with resistance to rising rates. Which other funds in ascending order of risk would you consider? Burt S.
Do you really want to be in a junk bond fund when part II of the debt bomb explodes (actually a continuation of part one since the problems were never addressed merely papered over) ???
Hello ... One of the things I liked about fund alarm was one could easily reference a list of honor roll funds if one was seeking out a fund. Since that list is no more, I have linked below what MSN list as the best performing bank loan funds form both a short and long term perspective.
i use closed end funds for this role in my portfolio. JRO and VVR. JRO is better managed of the two -- i watched them since October 2008. If you go with closed end, please make sure you learn about these instruments. They are currently trading at NAV or slight premium -- try to purchase when the premium is less than average (discount is more than average). this might be difficult as asset class is the most popular. YTD 2011 saw record inflows in floaters and each major house is adding them to their product line.
I would like to add one can also view the top rated funds for that category by changing top performing to top rated in the drop down window. I have linked below the top rated bank loan funds.
With default rates @ 2.4% in 2010 and might going back up to 3% this year (with 80% recovery if in default), and 4-5% spread to treasurys, both the high yield and floaters, are still one of better games in town. The new loans coming to markets are better quality and from better companies, and imbedded inflation protection is very important in this environment. nobody suggests putting 100% of one's assets in loans, but to call this asset class a pig means to call all risk assets a pig. you're welcome to go FDIC insured CDs - which seem to offer up to a whooping 1% if you lock your money for a year or two.
Comments
Mitchelg
Do you really want to be in a junk bond fund when part II of the debt bomb explodes (actually a continuation of part one since the problems were never addressed merely papered over) ???
http://moneycentral.msn.com/investor/partsub/funds/topfundresults.asp?Category=BL&Type=&Symbol=$HF
I hope this information is helpful ... and, Good Investing,
Skeeter
http://moneycentral.msn.com/investor/partsub/funds/topfundresults.asp?Category=BL&View=Rated
Skeeter