Bank loan funds may provide high-yield option
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Yields, of course, will be lower for the open-end funds that don't use leverage. Larkin recommends the Eaton Vance Floating Rate Advantage Fund (EABLX) open-end fund, which yields 6.62 percent, versus the closed-end Eaton Vance Floating Rate Income Trust (EFT), which yields 8.73 percent, as of this writing.

But there's also less volatility.

"If I look at EFT from July 9 to Aug. 15, right before the credit crisis, it dropped 19.2 percent, while EABLX fell only 4.3 percent for that same time period," says Larkin.

Beware expense ratios
Morningstar, which doesn't track true closed-end bank loan funds, reports that the average expense ratio for open-end and continuously offered closed-end funds is 1.39 percent, which is quite pricey. Many of the open-end funds are currently showing yields of 6.5 percent or better, with yields for the continuously offered closed-end funds typically one or two percentage points higher. In both categories, the year-to-date performance is considerably less.

If you can withstand the downdrafts, you'll have to decide if fees and loads are offset sufficiently by the returns to make these a worthwhile investment for your portfolio.

This list isn't meant to be a recommendation to buy; it is a sampling of the open-end and continuously offered closed-end funds tracked by Morningstar and some closed-end funds that can be found on the exchanges. Most of the companies represented offer multiple share classes.

A sampling of floating rate funds

Open-end funds: • AIM Floating Rate (AFRAX). • Eaton Vance Floating Rate (EVBLX). • Fidelity Advisor Floating Rate High Income (FFRAX). • Franklin Floating Rate Daily Access (FAFRX). • Hartford Floating Rate (HFLAX). • MainStay Floating Rate (MXFAX). • MFS Floating Rate High Income (FRHAX). • Putnam Floating Rate Income (PFLRX). • RiverSource Floating Rate (RFRAX). • Security Income Opportunity (SIOAX). • Van Kampen Senior Loan (VSLAX).   Continuously offered closed-end funds: • BlackRock Senior Floating Rate (XMPFX). • Highland Floating Rate (XLFAX). • ING Senior Income (XSIAX). • Oppenheimer Senior Floating Rate (XOSAX). • SunAmerica Senior Floating Rate (XNASX).   Closed-end funds: • BlackRock Floating Rate Income Strategies (FRA). • Eaton Vance Senior Floating Rate (EFR). • First Trust/Four Corners Senior Floating Rate Income (FCM). • Nuveen Floating Rate Income (JFR). • PIMCO Floating Rate Income (PFL). • PIMCO Floating Rate Strategy (PFN). • Van Kampen Senior Income Trust (VVR). • Western Asset Emerging Markets Floating Rate (EFL).