Three closed end bond funds.

music selection:  “U Can’t Touch This” — MC Hammer

Each Friday, I highlight three closed end bond funds that are yield rich and attractively priced.  I keep 40% of my portfolio allocated to this sector.  The high yields cover my annual budget and give me the freedom to step away and not make options trades if the market is not offering anything attractive.  Believe me when I say the best trades I have ever made were “no trades.”

Wells Fargo Multi-Sector Income (ERC) is a closed end fund that seeks high current income consistent with limiting its exposure to domestic interest rate risk through investment in non investment grade US debt securities loans and preferred stocks.  It pays an income only distribution on a monthly basis.

  • Discount to NAV – 6.85%
  • Yield – 10.01%
  • Effective leverage – 27.26%
  • Expense ratio – 1.67%
  • Learn more

NexPoint Strategic Opps 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 – 10.98%
  • Yield – 10.20%
  • Effective leverage – 14.77%
  • Expense ratio – 2.21%
  • Learn more

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 – 8.46%
  • Yield – 10.32%
  • Effective leverage – 30.07%
  • Expense ratio – 3.11%
  • Learn more

Devour your prey raptors!

Friday Fixed Income

Never miss another opportunity to devour prey!

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