Highland Capital Management is one of the top asset management firms in the world. The firm works with a number of institutional investors who are looking to benefit from credit backed securities. Like many other firms, Highland Capital Management has certain things that it offers to benefit its clients. One of these benefits is the Floating Rate Opportunities Fund. This is a fund that provides investors with a monthly dividend return. With the fund, investors will be in position to get monthly payments which can contribute to their returns. As a result, they will be in position to have a monthly income for anything they invest in with this fund. Learn more about James Dondero at High Yield Credit.
As a closed end fund, the Floating Rate Opportunities Fund is used to invest in floating rate loans and other securities that have floating rates. The use of this fund was made in an effort to help capitalize on fluctuating interest rates on loans and other securities. Highland Capital Management uses this fund as a way to help itself and its investor clients make money off of these financial securities and loans. The James Dondero is affiliated as the advisor of Highland Capital Management as it is managed by the entity Highland Capital Management Fund Advisors. Read more about James Dondero at Nexpoint Advisors.
Whenever the firm and clients are looking to capitalize from this fund, they will need to be aware of certain risks. There are a number of parts of the fund that must be taken into consideration before investing in it. These include things such as close end fund risk, senior loan risk, illiquidity risk and also credit risk. By considering these risks, both investors the Highland Capital Management will be in position to better capitalize on the fund. With a more thorough evaluation of the risks, investors will be in position to maximize the results on their returns.