http://www.nytimes.com/2005/10/30/business/yourmoney/30fund.html?pagewanted=2

If you're willing to time the market a bit, you may consider putting some of that money into a loan-participation fund, sometimes called a floating-rate fund, said Andrew Clark, senior research analyst at Lipper, the fund tracker. These portfolios invest in short-term bank loans with adjustable interest rates. As a result, if market rates rise, these portfolios, unlike traditional bond funds, stand to gain, not lose. Over the last three years, floating-rate funds have returned 7.2 percent a year, on average.

If you go this route, though, be prepared to monitor your account and market interest rates regularly.

loan-participation fund, sometimes called a floating-rate fund

loan-participation funds....called by a different name, such as 
bank-loan funds, 
floating-rate funds, 
prime-rate funds or 
senior loan funds.

fidelity "floating-rate"  "loan-participation" 
http://personal.fidelity.com/products/funds/mfl_frame.shtml?315916783   FFRHX  FFRAX


http://etfconnect.com/select/cef/loan_participation.asp

http://etfconnect.com/select/preferreds/loan_participation.asp


 edgier than your average intermediate corporate bond fund. But they generally carry less risk than junk bonds
 
 
 http://www.smartmoney.com/fundscreen/index.cfm?story=20040521
 
 
 Fidelity Floating Rate High Income
 The no-load shares of Fidelity Floating Rate High Income (FFRHX) were introduced in September 2002, but its load-fund sibling (which shares the same manager and research bench) — the Fidelity Advisor Floating Rate High Income (FFRAX) fund — has been around since 2000. The Advisor fund has racked up a 3.6% annualized three-year record, placing it in the middle of the loan-participation category. And while its no-load spin off has yet to be tested over the long haul, its expense ratio of 0.86% is a winner.
 
Manager Christine McConnell runs both versions of this fund. The no-load fund shares now boast assets of more than $1.25 billion, all gathered in less than two years. Unfortunately, cash is one thing this fund does not need more of. Its performance lagged in 2003, delivering 6.5%, compared with the category's 7.0% — partially because of its large cash stake, which has exceeded 20% in the past but more recently stood at 16%, according to the fund's most recent shareholder reports. Nonetheless, Morningstar's Berry believes the fund is a solid choice. "You get a lot of research capabilities because it's part of Fidelity's high-yield bond group," he says. "High-yield funds have been quite successful there, and we expect that to carry over to this fund." 



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