HYB - BANX And HYB: Delivering Income To Investors

2024-01-24 09:16:18 ET

Summary

• ArrowMark Financial Corp and New America High Income Fund are two closed-end funds that generate significant net investment income and trade at attractive discounts to their net asset values.
• ArrowMark Financial Corp primarily invests in regulatory capital relief securities, while New America High Income Fund invests in more traditional high-yield fixed-income securities.
• Both funds have the potential to provide regular income and are trading at attractive discounts, making them suitable and attractive for income investors.

Written by Nick Ackerman, co-produced by Stanford Chemist.

Closed-end funds are often an area where investors can put capital to work when they are searching for income. Often, higher yields can be achieved through utilizing leverage or simply a fund paying out more than it can really generate consistently. CEFs can and often pay out distributions in excess of their net investment income - that generally isn't a problem for equity funds as the assumption there is that capital appreciation can take hold to cover the shortfall....

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