Fixed Income Opportunities of the Week

Friday Fixed Income.

music selection:  “Trampled Under Foot” — Led Zepplin

Each Friday, I explore opportunities in Fixed Income Investing.  I keep a 40% allocation to debt and debt like securities in early retirement.  By focusing on medium to high yield issues and closed end funds, I am able to cover more than 100% of my budget with this allocation.  I will never have to “sell low”.  What follows is three closed end funds invested in debt and debt like securities that were chosen for being yield rich and attractively priced against their Net Asset Values (NAV). I am not adding additional fixed income exposure today but I might look here first if I was.

Brandywine Global (BWG) is a closed end fund that seeks current income with capital appreciation through investments in a portfolio of global fixed income securities.  It pays a managed distribution on a monthly basis.

• Discount to NAV – 14.27%
• Yield – 8.40%
• Effective leverage – 36.72%
• Expense ratio – 2.19%
• Learn more

First Trust Aberdeen Global (FAM) is a closed end fund that seeks high current income with capital appreciation through investments in a diversified portfolio of investment and non-investment grade securities of corporate and government issuers.  It pays an income only distribution on a monthly basis.

• Discount to NAV – 14.57%
• Yield – 8.84%
• Effective leverage – 27.4%
• Expense ratio – 2.51%
• Learn more

Aberdeen Asia Pacific income (FAX) is a closed end fund that seeks current income with incidental capital appreciation through investment in Australian and Asian debt securities.  It pays an income only distribution on a monthly basis.

• Discount to NAV – 12.92%
• Yield – 10.22%
• Effective leverage – 31.66%
• Expense ratio – 2.26%
• Learn more

Devour your prey raptors!