ISD - ISD: Steady As It Goes
2024-07-01 13:34:04 ET
Summary
- ISD fund continues to deliver steady performance with long-term above-average returns.
- However, I remain concerned about the fund's distribution, currently set at 9.2% of NAV, compared to long-term fund returns.
- Furthermore, a yawning gap between credit defaults and credit spreads suggests investors are not being compensated for elevated credit risks.
I recently wrote an article on the Allspring Income Opportunities Fund ( EAD ) and mentioned the PGIM High Yield Bond Fund, Inc. ( ISD ) as a possible alternative to EAD. Seeing how I have not written on the ISD for quite a while, I believe it may be timely to refresh my views on the ISD fund....
ISD: Steady As It Goes