Fixed-income funds should be giving you higher dividends as interest rates rise. You should be happy with that. One of the only ways to lose in the long run is if you bought into these funds when interest rates were very low — which meant the prices on those bonds was very high. That’s like buying Ford or ExxonMobil or McDonald’s stock when it is priced at its highest point ever.
Sorry — correction on that. It seems like you’ve made some BAD financial decisions …