By Collin Martin
Fixed-rate bonds are beginning to look more attractive than investments with floating coupon rates.
Floating-rate bonds have coupon rates that are tied to short-term benchmarks, often with a strong relationship to the Federal Funds rate, the overnight rate that the Federal Reserve uses to implement monetary policy changes. With the Fed likely on hold for the time being, it's unlikely that floating-rate coupons will rise much further, if at all, from their current levels. Investors who own floating-rate investments should consider shifting to those with fixed rates to lock in potentially higher