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  1. #1

    Floating rate high yield bond funds

    Under what conditions should one consider this type of funds?

  2. #2
    Floating-rates are tied to LIBOR, so that is the key for FR/BL funds. For several years post-financial-crisis, when LIBOR was well under 1% [floor for many FR/BLs], such funds acted simply as short-term HY funds. https://fred.stlouisfed.org/series/USD3MTD156N

  3. #3
    Raymondl:"Under what conditions should one consider this type of funds?"
    I will consider any fund, from any category, if it meets the criteria I have established for fund selection for my my portfolio (good total return record, good yield for income harvesting in retirement, relatively low risk and low volatility, compelling record of relatively good performance in corrections and downmarkets). Very few funds, from the floating rate high yield bond category, meet the criteria I have defined for fund selection, but I do currently hold one fund that does. I have no idea what you use as criteria for fund selection, but the fact that you are discussing a "category" probably means that you and I have a different way of viewing fund selection as I don't care about "category" if it meets my portfolio criteria for fund selection.

  4. #4
    Thank you all.
    I have about 80-90% equity in my IRAs and non-IRAs.
    I also have some cash sitting in my savings for the past few years and thought I should put at least half of it to use.

  5. #5
    I have no idea what you use as criteria for fund selection, but the fact that you are discussing a "category" probably means that you and I have a different way of viewing fund selection as I don't care about "category" if it meets my portfolio criteria for fund selection.

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