BCAT - CEF Report | May 2024 | Activism Is Heating Up
2024-06-13 05:33:15 ET
Summary
- Taxable bond CEF space value shrinking as discounts tighten.
- Opportunities exist, especially following activists.
- Focus on top-down assessment, cheap sectors, and specific funds like Cohen & Steers Select Preferred and Income.
The value in the taxable bond CEF space continues to shrink as discounts tighten up a bit. There are still some pockets of opportunities out there, especially if you follow the activists. This report will focus on the activism and the funds that they are targeting and how you can piggyback on their moves.
First, a quick top-down assessment. I always look at sector percentiles to see where investors are bidding up funds to expensive valuations and which sectors are trading cheap. Then, I attempt to figure out why......
CEF Report | May 2024 | Activism Is Heating Up