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Friday Fixed Income

Three Fixed  Income Picks.

music selection:  “I Feel Fine” — The Beatles

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 – 7.68%
  • Yield – 9.92%
  • Effective leverage – 24.44%

Brookfield Real Assets Income (RA) is a closed end fund that seeks stable income from real asset companies and issuers.  It pays a managed distribution on a monthly basis.

  • Discount to NAV – 6.04%
  • Yield – 10.03%
  • Effective leverage – 21.08%

Eaton Vance Tax Advantaged Bond and Option (EXD) is a closed end fund that seeks current income through a short-term, high quality bond strategy and a rules-based option overlay strategy.

  •  Discount to NAV – 8.38%
  • Yield – 11.92%
  • Effective leverage – none

Devour your prey raptors!

{ 2 comments… add one }
  • Chris B January 26, 2018, 10:12 pm

    I’ll have to read more about EXD. I wonder if their -18% one year price or their -45% five year price indicates a “return of capital minus fees” situation or if cyclical forces are at work.

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