DSL - DSL: Premium Remains While Distribution Coverage Weakens
2024-06-26 17:52:07 ET
Summary
- DSL is a closed-end fund that continues to trade at a slight premium; while a premium isn't unheard of, it also means it is no bargain today.
- In the latest report, the NII distribution coverage was declining, which isn't an encouraging sign.
- The portfolio is heavily invested in emerging markets, which carries some unique risks, but the portfolio also trades substantially below par.
Written by Nick Ackerman, co-produced by Stanford Chemist.
We last covered DoubleLine Income Solutions Fund ( DSL ) earlier in 2024, at a time when more interest rate cuts looked likely than they do now. The fund has seen its discount little changed since our prior update, trading at a slight premium. The closed-end fund has moved mostly sideways since that update as well, in terms of its share price, but on a total return basis, we saw some gains.
DSL Performance Since Prior Update (Seeking Alpha)