EIC - CEF Weekly Review: Some Funds Are Locking In High Leverage Costs
2024-04-13 08:00:00 ET
Summary
- We review CEF market valuation and performance through the first week of April and highlight recent market action.
- CEFs had an off week as stocks and Treasuries fell, but March was the best month of the year so far.
- CLO CEFs are locking in relatively high leverage costs, which will push their net income levels lower over the next couple of years as the Fed cuts rates.
- Pioneer Muni CEFs hiked distributions.
Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We also try to provide some historical context as well as the relevant themes that look to be driving markets or that investors ought to be mindful of....
CEF Weekly Review: Some Funds Are Locking In High Leverage Costs