PDO - DSL: Positioning Itself For A Dollar Decline

2024-04-23 10:25:15 ET

Summary

• The DoubleLine Income Solutions Fund offers income-focused investors a respectable level of income with a 10.90% yield.
• The fund's yield is lower than its peers, but its performance has been consistent and it has outperformed certain bond indices over the past few months.
• The fund's leverage ratio is reasonable compared to its peers, and it has a history of stable distributions, although it did cut its distribution in 2020.
• The fund failed to cover its distribution in its most recent fiscal year, but it seems to have solved that problem as of late.
• The fund appears to be positioning into emerging market bonds, which increases its appeal given the likelihood of a long-term decline of the U.S. dollar.

The DoubleLine Income Solutions Fund ( DSL ) is a closed-end fund that income-focused investors can purchase in an effort to earn a respectable level of cash flow from their assets. This is something that retirees might appreciate, as the persistently high level of inflation that has been dominating the American economy over the past few years has required all of us to take steps to increase our incomes simply to maintain the lifestyles to which we have become accustomed. The DoubleLine Income Solutions Fund does reasonably well at providing additional income, as its 10.90% yield is much more attractive than many other things that currently trade in the market. However, the fund’s yield is admittedly not particularly impressive compared to its peers. We can see that here:

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