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Friday Fixed Income

Three Closed End Funds.

music selection:  “Jet” — Paul McCartney & Wings

Each Friday, I share three closed end funds invested in debt and debt like instruments.  These funds are chosen based on yield and discount to NAV.  I allocate 40% of my portfolio to this strategy.  The result has been a passive cash return that exceeds my annual budgetary needs.  It is a great relief to not be forced to make options trades when nothing attractive is on offer.  Don’t pick up nickles in front of a steam roller!

First Trust Strategic High Income 2 (FHY) is a closed end fund that seeks high current income with capital growth through investment in non investment grade and investment grade debt and equity securities.  It pays an income only distribution on a monthly basis.

  • Discount to NAV – 14.00%
  • Yield – 8.05%
  • Effective leverage – 26.73%
  • Expense ratio – 1.96%
  • Learn more

Advent Claymore Convertible & 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 – 10.91%
  • Yield – 9.21%
  • 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 – 10.83%
  • Yield – 9.93%
  • Effective leverage – 40.91%
  • Expense ratio – 3.49%
  • Learn more

Devour your prey raptors!

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