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Friday Fixed Income

Three fixed income picks.

music selection:  “Little Bitty Pretty One” — Thurston Harris

I keep approximately 40% of my portfolio in fixed income, mostly closed end funds trading at a discount to NAV.  This provide sufficient current income to ride out a downturn in the markets.  It is “sleep at night” money.  This is essential to any trader as the best trades are often the ones you don’t make.  You need discretion to pass if the risk reward ratio is unfavorable.

Each Friday, I highlight three fixed income picks where I’d consider putting new money today.  These are names that in my opinion are yield rich and attractively priced.  This week’s selections are below.

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (OPP) is a closed end fund that is invested in various bonds globally.  It pays a managed distribution on a monthly basis.

  • Discount to NAV – 7.25%
  • Yield – 9.91%
  • Effective leverage – 24.44%

Aberdeen Inc Credit Strategies (ACP) returns this week.  The fund seeks current income and capital appreciation in a basket of senior loans.

  • Discount to NAV – 6.72%
  • Yield – 10.08%
  • Effective leverage – 30.07%

Eaton Vance Tax Advantaged Bond and Option (EXD) also returns from last week.  The fund seeks current income through a short-term, high quality bond strategy and a rules-based option overlay strategy.

  •  Discount to NAV – 7.10%
  • Yield – 11.52%
  • Effective leverage – none

Devour your prey raptors!

{ 2 comments… add one }
  • Martin January 20, 2018, 2:57 am

    Thanks Raptor. Do you consider moving some of your existing investments to the funds presented here? One should always migrate to where he sees best returns to risk, right?

    • The Lizard King January 20, 2018, 3:24 am

      i’m currently at target allocation for fixed income. If I were adding exposure, this is where I’d look first today.

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