Top 5 Financial Companies To Watch For 2015

Top 5 Financial Companies To Watch For 2015: Invesco Dynamic Credit Opportunities Fund (VTA)

Van Kampen Dynamic Credit Opportunities Fund (the Fund) is a diversified, closed-end management investment company. The Fund focuses to invest primarily in loan and debt instruments (and loan-related or debt-related instruments) (collectively, credit securities) of issuers that operate in a variety of industries and geographic regions located throughout the world. The Fund's investment adviser is Van Kampen Asset Management (the Adviser). The Fund's investment subadviser is Avenue Europe International Management, L.P. (the Subadviser).

The Fund will invest at least 80% of its net assets (including borrowings for investment purposes) in any combination of credit securities, including senior secured floating rate and fixed-rate loans (Senior Loans); second lien or other subordinated or unsecured floating rate and fixed-rate loans or debt, and other debt obligations, including high-yield, high-risk obligations (such as securities that are rated below investment g rade by a nationally recognized credit rating organization or unrated securities that are deemed to be of comparable quality). The Fund may also invest up to 20% of its assets in structured products, including collateralized debt and loan obligations (collectively, structured products). The Fund may also invest in swaps, including credit default, total return, index and interest rate swaps. To the extent that the Fund invests in structured products or swaps that adjust exposure to credit securities, such investments will be counted for purposes of the Fund's 80% policy.

The Fund may invest in credit securities of any credit quality, and may invest without limitation in obligations below investment grade. Any of the Fund's investments may be issued by non-stressed, stressed and distressed issuers, including issuers in bankruptc! y, provided that with respect to the portion of the Fund's assets to be managed by the Subadviser, the Subadviser will generally not inve st in securities that at the time of investment have a total! yield above the applicable Avenue-Credit Thresholds. The Fund may invest in credit securities of any maturity or duration, and although the Fund will not be managed for maturity or duration, given the nature of the Fund's portfolio, the Fund's portfolio will likely have a low average duration (generally, four years or less). In addition, the Fund may invest up to 20% of its assets in equity securities obtained through debt restructurings or bankruptcy proceedings. The Fund may utilize credit securities derivative instruments.

Advisors' Opinion:

• [By John Dowdee]

  The following 10 funds satisfied all of these conditions:

  BlackRock Float Rate Strategies (FRA). This CEF sells at a discount of 3%, which is low compared to an average premium of 2% over the past year. The distribution has been managed at 6.1% and a small amount (less than 10%) has been return of capital (ROC). However, this has not negatively affected net asset value (NAV) so has not been destructive. The fund holds 447 securities, with 90% in floating rate loans. FRA utilizes 27% leverage and has an expense ratio of 1.7%, including interest payments. Eaton Vance Floating Rate (EFR). This CEF sells at a 1% premium, which is low compared to an average premium of 5% over the past year. The distribution is 6.2%, none of which was ROC. The fund holds 800 securities, with 90% in floating rate loans. About 85% of the securities are from U.S. companies. EFR utilizes 35% leverage and has an expense ratio of 1.8% including interest payments. ING Prime Rate Tr ust (PPR). This CEF sells for a premium of 2%, which is below the average premium of 5%. It has a distribution of 6.8%, none of which was ROC. The fund has 350 holdings, virtually all in senior loans and from US companies. PPR utilizes 29% leverag! e and has! a high expense ratio of 2.1%, including interest payments. Invesco VK Dynamic Credit Opportunities (VTA). This CEF sells for a discount of 5%, which is below the average discount of 1%. It has a distribution of 7.1%, none of which was ROC. The fund has 495 holdings, with 76% in floating rate loans. About 25% of the loans are from non-US companies. VTA utilizes a relatively low 20% leverage but still has a high expense ratio of 2.1%, including interest payments. Invesco VK Senior Income (VVR). This CEF sells for a discount of 1%, which is below the average premium of 3%. It has a distribution of 7.1%, none of which was ROC. The fund has over 500 holdings, with 89% in floating rate loans. Almost all (95%) securities are from US companies. VVR ut
• [By Harry Domash, Publisher, DividendDetective and Winning Investing]

  If you're worried about rising interest rates then Invesco Dynamic Credit Opportunities, ticker (VTA), invests in below investment-grade floating rate bank loans. In other words, these are called senior loans.

  They're bank loans that adjust their payouts based on prevailing interest rates, so if interest rates go up, these loans will pay higher dividends, so this is a good hedge if you are concerned about rising interest rates.

  Another one that's really performed, and it's paying a 6.9% yield right now, Guggenheim Strategic Opportunities, ticker (GOF), that's actually Claymore Guggenheim, holds corporate and government backed, that it's mostly investment-grade and it's paying a 10.1% yield right now, which is pretty high. Those are three that I could recommend right now.

  Steven Halpern: Well, we really appreciate you joining us today and sharing your expertise. Thank you.

  Harry Domash: You're welcome.

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source from Top Stocks Blog:http://www.topstocksblog.com/top-5-financial-companies-to-watch-for-2015.html