WDI - CEF Market Weekly Review: The Impact Of A Flatter Yield Curve On CEFs

March, 04 2022 01:20 PM Western Asset Diversified Income Fund of Beneficial Interest

We review CEF market valuation and performance through the fourth week of February and highlight recent market action.
CEF NAVs held up well this week outside of EM sectors and in line with broader markets, however, discounts widened in aggregate due to the spike in volatility.
On the back of our recent discussion of CEF income headwinds due to an increase in short-term rates, we discuss the impact of a flatter yield curve.
After decreasing our CEF allocation in our Income Portfolios over 2021, we are beginning to move back into the space, taking advantage of a more balanced valuation picture.

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Company Name:	Western Asset Diversified Income Fund of Beneficial Interest
Stock Symbol:	WDI
Market:	NYSE