HYB - HYB: Holding This High Yield CEF For The DRIP (Rating Downgrade)

2024-06-06 16:20:32 ET

Summary

• The New America High Income Fund is a fixed income CEF.
• The fund's previously attractive discount to NAV has narrowed, and the instrument has a high cost of leverage due to rising rates.
• The CEF's conservative portfolio may limit downside in a downturn, but also limits upside outside the current dividend yield.
• The CEF's highest sectoral exposure is composed of Energy names.

Thesis

We last covered the New America High Income Fund ( HYB ), a CEF we hold in our portfolio, roughly six months ago. In our last article, we wrote about the CEF's very wide discount to net asset value and the appealing entry point presented. The CEF is up since our rating:

For further details see: