FSLF - CEF Weekly Commentary | June 20 2021

• The major equity indices had their worst week since early January - mostly on inflation concerns and a hawkish FOMC that signaled an increase in rates may come sooner than expected.
• On Friday, stocks took another leg lower after St. Louis Fed President James Bullard said that he expects the Fed’s first rate hike in late 2022.
• Discounts in taxable CEFs were largely flat on the week though NAVs were mostly lower.
• The fear in higher rates drove the sector performance (outside of munis) with limited duration and senior loans doing best on price during the week. Munis were third with a small gain.
• We released a report on Friday titled "Swap Options For Reducing Discount Risk" that aimed at finding options to replace premium level CEFs.

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