Salomon Brothers Emerging Market Floating Rate Fund buys adjustable-rate bonds from emerging-market companies and countries.
At Fidelity, the firm's offering in this space is the Floating Rate High Income Fund.
WSJ: As Many Stocks and Bonds Get Pricey, It's Time to Play Defense
That further reduces the average credit quality of remaining borrowers underlying floating rate securities.
FORBES: Are Floating Rate Funds The Wrong Answer To Rising Rates?
Based on that, many companies have refinanced their floating rate debt into fixed rate loans.
FORBES: Are Floating Rate Funds The Wrong Answer To Rising Rates?
Floating rate debts for less financially sophisticated companies are often predicated on Prime instead.
FORBES: About The Alleged LIBOR "Scandal", Back Away From The Cliff
High yield bonds and senior floating rate loans have performed quite well over the past four years.
FORBES: Investor Fears Exceed Actual Risks: 2013 Is Full Of Opportunities
As of June 30, floating rate loans comprised over 93.1% of the portfolio.
FORBES: Orchard First Source BDC prints $100M IPO; loan book averages 8.41%
Pegged rates are also susceptible to speculative attack, whereas a floating rate can adjust more smoothly to market forces.
In the last class are the Van Kampen Senior Loan, Eaton Vance Prime Rate Reserves and Franklin Floating Rate funds.
The most startling aspect of the proposed deal: Bucksbaum is funding the deal almost entirely by debt, much of it short term and floating rate.
"In a high-net-worth portfolio, the floating rate element is typically cash, " says Andrew Marshak, a managing director in Credit Suisse Asset Management's Credit Investment Group.
Nuveen Senior Income Fund and Nuveen Floating Rate Income Opportunity Fund.
Floating rate funds have been around for more than a decade.
FORBES: Are Floating Rate Funds The Wrong Answer To Rising Rates?
The BOE, with a strong pound and a mortgage market that is almost entirely floating rate, is expected to go higher still, showing the Fed stimulative by contrast.
The Neuberger Berman Global Floating Rate Income Fund is also London-listed, but its portfolio is heavily skewed towards U.S. loans, which account for more than 80% of the portfolio.
To answer these fears, there has been an explosion in funds that specialize in bank loans (aka floating rate loans), including BlackRock Senior Floating Rate (BFRCX), RS Floating Rate (RSFLX) and Neuberger Berman Floating Rate (NFIAX).
FORBES: Are Floating Rate Funds The Wrong Answer To Rising Rates?
Berry likes the similar Eaton Vance Floating-Rate Fund, yielding 1.9% after expenses of 1.8%, for its "steady performance and proven management" and the no-load Fidelity Floating Rate High Income Fund, which is returning 2.9% after expenses of 0.9%.
If interest rates rise, active fixed-income investors could invest in short-term bonds, which tend to remain fairly stable in rising rate environments, or use floating rate funds, which are more insulated from the negative impact of rising rates.
FORBES: 5 Reasons Why Bond Funds Can Help You Navigate Bond Market Headwinds Successfully
The levels of fixed-rate debt and floating-rate debt should come down, and the coverage ratios should improve in the next year or two, says General Growth Chief Financial Officer Bernard Freibaum Bernard Freibaum in a conference call with investors today.
The levels of fixed-rate debt and floating-rate debt should come down, and the coverage ratios should improve in the next year or two, says General Growth Chief Financial Officer Bernard Freibaum in a conference call with investors today.
Another reason demand for the long bond has been so voracious is that a lot of investment banks still use them to hedge their corporate-bond positions and interest-rate swaps (between fixed- and floating-rate obligations).
Floating-rate securities, securities with puts, securities where, if certain things happened, a sinking fund kicked in.
The polite term for the asset class we have in mind is floating-rate loans.
Floating-rate funds come in three varieties: open-end, closed-end and a hybrid of the two.
She also introduced a floating exchange rate regime and lifted controls on currency trading.
Other options might be high-yield bonds, floating-rate debt, cash, commodities, or real-estate income producing properties.
FORBES: How to Protect Your Portfolio from Rising Interest Rates
One area that provides protection against rising rates is floating-rate bonds, notes Ms. Bewick.
WSJ: As Many Stocks and Bonds Get Pricey, It's Time to Play Defense
Investors who like the idea of floating-rate funds but not bank loans have a few other options.
It is more flexible (with a floating exchange rate) and its central bank is still soundly run.
But still, an all-debt floating-rate purchase does bring back memories of the bad old days of real estate.
应用推荐