The Risk Bug Is Biting Bank Loan Funds

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After a healthy 2004, bank loan funds seem to be coming down with the same malady that's punishing the high-yield bond market.

While still up close to 1% since the start of the year, the average bank-loan or floating-rate fund has dropped 0.12% over the past month, according to fund tracker Morningstar.

The dip, however slight, makes it only one of two bond fund categories in the red for the past 30 days -- the other laggard being high-yield funds, which are down 1.39% on average. ...