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Friday Fixed Income

Three more CEFs in the debt space.

music selection:  “Howlin’ For You” — Black Keys

Each Friday, I post three closed end funds invested in debt and debt like securities. These can serve as the anchor of a income centric portfolio to support early retirement. I keep 40% of my portfolio in this sector and it is sufficient to cover my early retirement budget. I have another 60% available for trading and growth to ensure I stay ahead of inflation.

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 – 11.35%
  • Yield – 9.04%
  • Effective leverage – 39.07%
  • Expense ratio – 2.37%
  • Learn more

NexPoint Strategic Opportunities 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 – 8.93%
  • Yield – 10.75%
  • Effective leverage – 14.77%
  • Expense ratio – 2.54%
  • Learn more

Eaton Vance Tax Advantaged Bond & 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 – 13.16%
  • Yield – 12.55%
  • Effective leverage – none
  • Expense ratio – 1.44%
  • Learn more

Devour your prey raptors!

{ 4 comments… add one }
  • Mr. Tako June 22, 2018, 4:07 pm

    I always love these Friday Fixed Income posts Mr. Velociraptor. Keep on writing them!

    • The Lizard King June 22, 2018, 4:33 pm

      Thanks Tako! I think fixed income is very uncovered in financial media. It’s so important but ignored because its kind of boring…

  • fiwp June 28, 2018, 2:29 am

    The EXD dividend is incorrect here. They’ve cut their dividend, so it’s about an effective 7.11% now.

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