April 7, 2011

Floating rate loan funds date back to the late 1980s (as a by-product of the Savings and Loan crisis), but it wasn’t until the early 2000’s that investors began to pay serious attention to them as a key component of a fixed income strategy. Among other benefits, it is the asset class’s ability to provide a hedge against rising short-term rates that make it appealing as a complement to a fixed income portfolio.

By Prima Capital

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