ARES - BDC CEF: High Yield Play Or Wealth Destroyer?
The First Trust Specialty Finance and Financial Opportunities Fund (FGB)
Main thesis
In spite of a high yield and a well-covered distribution, investors should be careful with this closed-end fund. First Trust is a highly regarded portfolio manager and they have done a great job with its investment selection but the holdings have pretty significant downside risk. The underlying fundamentals are OK and the U.S. economy is healthy for now but the fund will test the patience of even aggressive investors. It's possible that FGB is cheap enough to merit investment consideration for