After a dismal 2008, bank-loan funds are the top performing fixed-income fund category so far in 2009. So far this year, the funds have gained 19 percent, according to Morningstar. Yet, the WSJ Fund Track warns that the funds are likely in for more volatility.

Daisy Maxey interviewed portfolio managers, discovering that they see more volatility ahead and that some believe their are still bargains in the sector.

Kyle Jennings, managing director at Goodwin Capital Advisers; Jeff Bakalar, senior vice president and head of the senior bank-loan group at ING Investment Management and Scott Page, director of the Eaton Vance's bank-loan group are the portfolio managers quoted in the article. 

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