RA - Brookfield Real Assets: A Great Yield Play But Historically High Premium

• Brookfield offers a reliable monthly stream of income at over 12% yield to NAV and over 11% yield to price.
• The stock has historically been traded at a discount to NAV but has changed its pattern during the previous year and is now being traded at a historically high premium.
• The fund is moderately leveraged and is likely to withstand the current rising interest rate environment, but the distributions are highly sourced from the return of capital, eroding its NAV.
• I am neutral on the stock primarily because of the high premium, return of capital, and the rising interest rate environment.

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