Image Credit: Alex Nabaum
Floating-rate funds have taken on water.
These funds are meant to protect against rising interest rates while paying high income and preserving capital. They sank in the first quarter as coronavirus locked down the economy and the Federal Reserve snuffed out the notion interest rates will rise anytime soon.
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money