Three closed end bond funds.

music selection:  “Burnin’ For You” — Blue Oyster Cult

Each Friday, I present three closed end funds invested in fixed income and similar instruments.  The most important decision most investors make for the long term is their asset allocation.  There is a real shortage of press coverage of the bond component.  I get it.  Bonds aren’t sexy.  But they are important part of every portfolio.  I prefer a 60/40 equity/bond allocation.  It serves me well with my dividends, distributions, and interest coming to 126.36% of my annual budget.  I will never be forced to sell my equity stakes “low.”

Aberdeen Income Credit Strategies (ACP) is a closed end fund that seeks a high level of current income with capital appreciation through investing in a portfolio of senior loans.  It pays an income only distribution on a monthly basis.

  • Discount to NAV – 7.86%
  • Yield – 10.35%
  • Effective leverage – 30.07%
  • Expense ratio – 3.11%
  • Learn more

Franklin Limited Duration Income (FTF) is a closed end fund that seeks high current income and capital appreciation through investment in high yield corporate bonds, floating rate bank loans and mortgage and other asset backed securities.  It pays a managed distribution on a monthly basis.

  • Discount to NAV – 6.45%
  • Yield – 10.81%
  • Effective leverage – 24.01%
  • Expense ratio – 1.35%
  • Learn more

Eaton Vance Tax Advantaged Bond and Option (EXD) is a closed end fund that seeks to 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 – 7.69%
  • Yield – 11.85%
  • Effective leverage – N/A
  • Expense ratio – 1.45%
  • Learn more

Devour your prey raptors!

Friday Fixed Income

Never miss another opportunity to devour prey!

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