Floating rate loan funds are all the rage due to worries about rising rates, and William Lemberg, portfolio manager for the Dreyfus Floating Rate Income Fund, says he is finding better yield for the credit risk in Europe. Lemberg is also finding excellent credits domestically in the healthcare sector as a result of Obamacare increasing volume in hospitals. Finally, he sees rates rising on the short end of the curve in 2015 and at that time floating rate instruments will see a step up in yield.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

More from Video

Video: Jim Cramer on Trade Tariffs, Rising Rates, Kimberly Clark and Hasbro

Video: Jim Cramer on Trade Tariffs, Rising Rates, Kimberly Clark and Hasbro

Video: Stop Using Student Loan Money to Buy Bitcoin

Video: Stop Using Student Loan Money to Buy Bitcoin

Let the Najarian Brothers Crash-Proof Portfolio

Let the Najarian Brothers Crash-Proof Portfolio

Learn Options Trading from the Najarian Brothers, the Best in the Business

Learn Options Trading from the Najarian Brothers, the Best in the Business

Jim Cramer: Kimberly Clark's Quarter Was Better Than Procter & Gamble's

Jim Cramer: Kimberly Clark's Quarter Was Better Than Procter & Gamble's