This topic could not be more timely for me! I'm a new investor, and I was motivated by a recent article in Barron's suggesting that the Bank Loan class would be especially lucrative for fixed-income investors. Although I'm a quick study in general, I started bogging down with the ins and outs of LIBOR rates (in the original article, and again in your exchange on this thread). But I think I got the gist of it.

 So, going on a quest for the piece of the action, I finally found PHD. I'm just beginning to understand the complexities of CEF investing, but the consistent 12% return and the bulletproof Morningstar ratings overcame my uncertainty, and I bought--a little ($3000).

So I'm trying to decide whether to triple or quadruple this foray. But I still don't really grasp the risks. Perhaps one of you wise ones can explain what you just said so I can get it?

Thanks

Alan