Three CEFs for your consideration.

music selection:  “Let It Whip” — Dazz Band

Each Friday, I present three closed end funds invested in debt and debt like securities that are yield rich and attractively priced.  I keep a 40% allocation to this category and it has served me well.  Current projected 12 month distributions, dividends, and interest on my portfolio meets 127.27% of my budgetary needs.  This is my ‘sleep well at night’ allocation.

Advent Claymore Convertible and Income (AVK) is a closed end fund that seeks total return from current income and capital appreciation through investment in convertible and non convertible debt securities.  It pays an income only distribution on a monthly basis.

  • Discount to NAV – 11.05%
  • Yield – 9.19%
  • Effective leverage – 39.07%
  • Expense ratio – 2.37%
  • Learn more

Advent Claymore Convertible Securities and 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 an income only distribution on a monthly basis.

  • Discount to NAV – 11.23%
  • Yield – 9.91%
  • Effective leverage – 40.91%
  • Expense ratio – 3.49%
  • Learn more

NexPoint Strategic Opportunity Fund (NHF) is a closed end fund that seeks current income with capital appreciation through investment in floating and fixed rate loans, bonds, debt obligations, mortgage backed and asset backed securities, collateralized debt obligations and equities.  It pays an income only distribution on a monthly basis.

  • Discount to NAV – 11.52%
  • Yield – 10.39%
  • Effective leverage – 14.77%
  • Expense ratio – 2.21%
  • Learn more

Devour your prey raptors!

Friday Fixed Income

Never miss another opportunity to devour prey!

4 thoughts on “Friday Fixed Income

  • April 20, 2018 at 9:59 pm
    Permalink

    Have you calculated the total return of your CEF portfolio?

    Reply
  • April 23, 2018 at 3:54 pm
    Permalink

    Thanks for these posts Lizard King. I quite enjoy them.

    The thing that kills me about these CEFs is the pretty high expense ratios. Some from previous posts have been more in the 1% range. Those seem a little better.

    Reply
    • April 23, 2018 at 8:29 pm
      Permalink

      The 3% rates are usually composed of about half interest rate expense. You are actually get a pretty good interest rate on 40% or so leverage. You can always pass on the high fee ones and stick with the low fee ones.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*