VBF - CEF Report April 2021: A Complete Round Trip
- Taxable bond CEFs are now at their tightest levels of the last eight years going back to 2012-early 2013. There's not much juice left.
- That doesn't mean that we need to sell out of CEFs, we just need to be more prudent and vigilant. That includes re-positioning to the best ideas along with more unique ideas.
- Those ideas include special situations and distributions changes that lead to entry opportunities or upside potential.
- Some newer funds also have good value, and the lack of track record tends to slow their rally.
- We like term funds like GDO, JPT, NID, IHIT (cheaper) along with perpetual funds like EAD, NSL, and MHD in munis.
For further details see:
CEF Report April 2021: A Complete Round Trip