JHAA - CEF Analysis: High-Yield Sector Update

March, 04 2021 07:00 AM Nuveen High Income 2023 Target Term Fund of Beneficial Interest

The high-yield CEF sector has done well though not as well as other sectors in terms of discount returns in the last month (+1.3%).
The sector as a whole is near its long-term fair value with a discount of -5%. But with spreads near the pre-COVID tightest levels, there isn't much upside for NAVs.
When there's not much upside for NAVs and discounts are relatively tight, it may make sense for those risk averse or more tactical to make swaps.
Here we list some clear sells, marginal sells, and on watch to sell funds along with the funds we like best to swap into.
Another option would be to look at a high-yield bond mutual fund to hide out until discounts blow out.

For further details see:

Company Name:	Nuveen High Income 2023 Target Term Fund of Beneficial Interest
Stock Symbol:	JHAA
Market:	NYSE