Three more fixed income picks for your consideration.

music selection:  “Mickey” — Tony Basil

Every Friday, I present three opportunities in the debt space inside closed end funds. I isolate CEFs that are yield rich and attractively priced relative to their net asset value. These provide better safety for the long term investor than open end funds as there is no early redemption risk for the firm offering the fund. They can and do hold their debt securities to maturity, effectively allowing 100% of duration risk to expire over time. Open end funds are forced by liquidations to sell bonds at the worst possible time.

My personal target for this sector is about 40% of my main taxable portfolio.  This goes a long way to creating a portfolio where my distributions, dividends, and interest cover my annual budget by 120% or more.  I sleep well at night and am not compelled to trade to meet bills.  I have discretion to wait for fat pitches.

Advent Claymore Convertible Securities & Income (AGC) is a closed end fund that seeks total return through investments in global convertible and non convertible securities and utilizing and option writing strategy.  It pays income only distribution on a monthly basis.

  • Discount to NAV – 10.58%
  • Yield – 9.81%
  • Effective leverage – 40.91%
  • Expense ratio – 3.49%
  • Learn more

Brookfield Real Assets Income (RA) is a closed end fund that seeks total return through investments in global convertible and non convertible securities and utilizing and option writing strategy.  It pays a managed distribution on a monthly basis.

  • Discount to NAV – 10.26%
  • Yield – 10.96%
  • Effective leverage – 21.08%
  • Expense ratio – 0.13%
  • Learn more

Eaton Vance Tax Advantaged Bond and Income (EXD) is a closed end fund that seeksto provide tax-advantaged current income and gains through the use of a tax-advantaged short-term, high quality bond strategy and a rules-based option overlay strategy..  It pays a managed distribution on a quarterly basis.

  • Discount to NAV – 10.31%
  • Yield – 12.09%
  • Effective leverage – none
  • Expense ratio – 1.45%
  • Learn more

Devour your prey raptors!

 

Friday Fixed Income

Never miss another opportunity to devour prey!

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