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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: SeaViewer who wrote (103836)	4/14/2006 9:47:09 AM
From: Knighty Tin	Respond to of 132070

EGM, A floating rate is very similar to a variable rate. It changes with rate moves in the market place. The problem is, this and most other floating rate funds are basically junk funds. So, you have very little interest rate risk, but a lot of credit risk. If rates are going up due to economic growth, these funds should do great. That's their best environment. The rate will crank up with the market, and the underlying credit should improve if the economic background is getting better.