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CIK - CIK: This High Yield CEF Is Now Too Expensive
Credit Suisse Asset Management Income Fund Inc.
2024-03-16 13:36:14 ET
Summary
Credit Suisse Asset Management Income Fund (CIK) has a large allocation to CCC-rated bonds and 27% leverage ratio, making it a risk-on vehicle.
CIK is currently trading at a 3.69% premium to net asset value, which is considered overextended versus its historic pattern.
CCC credit spreads have tightened, but corporate defaults are still climbing, indicating a potential correction in credit spreads and CIK's premium to NAV.
The CEF is overweight fixed rate bonds which fall in the Level 2 GAAP valuation bucket.