When interest rates rise, bond funds can suffer. If you are
concerned about the potentially negative impact of rising rates on
your portfolio, certain fixed-income investment strategies may help
you manage the risk.
Floating-rate bond funds — also known as bank loan funds
or senior loan funds — are one option to consider. These
funds invest in floating-rate bank loans, which are short-term debt
instruments with a variable interest rate. In fact, a floating-rate
bank loan's variable rate provides one of a floating-rate
fund's most attractive benefits: reduced interest-rate risk.
However, these funds carry additional risks that you should
carefully consider before investing.
Distinct from Traditional Bond Funds
