Choose your weapons: Arming yourself against rising rates and recession

John Cole Scott, chief investment officer at Closed-End Fund Advisors -- the chairman of the Active Investment Company Alliance -- discusses and compares floating-rate and senior loan funds with preferred-securities funds, noting that floating-rate funds are a tool for combating high and rising interest rates, while preferred equities are a good weapon for battling a recession. As a result, investors in today's complex market may want to "split the ticket," using both types of funds to bolster their portfolio; he looks at the characteristics of each asset class, and has fund suggestions in each category for investors to consider.