SPY - BIT: Beat The Fed With This High-Yielding CEF

• BIT invests in a number of securitized bonds, CLOs, and corporate bonds in order to generate income for its investors.
• The portfolio is incredibly well diversified and should likely be reasonably safe despite a good portion of it being below investment-grade.
• The fund boasts a substantially higher yield than ETF options due to its focus on high-yield and the use of leverage.
• BIT is easily able to cover the distributions that it pays ou,t so it should be able to provide a steady source of reliable income.
• The fund is trading at a premium and looks a bit expensive compared to its historical normal level.

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