WDI - DLY: Improving Allocation And Navigating The Current Bond Market Environment Well

2024-03-19 16:46:21 ET

Summary

• DoubleLine Yield Opportunities Fund offers a competitive yield for income-focused investors, although it is lower than some other bond funds.
• The DLY closed-end fund has lower leverage than its peers, making it appealing to risk-averse investors.
• The fund has shown positive performance, beating the Bloomberg U.S. Aggregate Bond Index over the past six months and providing consistent distributions.
• The fund failed to cover its distribution for two straight years, although it appears to have fixed that problem recently.
• The fund is currently trading at a larger-than-average discount, but it would be smart to wait until after this week's Fed meeting to make any decision about the fund.

The DoubleLine Yield Opportunities Fund ( DLY ) is a closed-end fund aka CEF that income-focused investors can employ in order to achieve their goals. DoubleLine has earned something of a reputation as a top-notch bond fund manager and, much as is the case with PIMCO funds, offerings from DoubleLine tend to have higher yields than can be obtained elsewhere in the market. The DoubleLine Yield Opportunities Fund is not an exception to this, as its 9.01% current yield is competitive with other bond funds, although it is not as high as a few other funds that invest across the debt spectrum. For example, the PIMCO Income Strategy Fund ( PFL ) is yielding 11.70% right now. Here are the yields of a few other bond funds that are classified as multi-sector taxable bond funds by Morningstar:

For further details see: