EFT - JFR: Could Be A Good Asset To Add To A Retirement Account Today

2024-05-28 10:14:21 ET

Summary

• The Nuveen Floating Rate Income Fund offers a significantly higher yield than most fixed-rate bond funds, currently at 11.68%.
• The fund primarily invests in floating-rate securities that deliver a higher level of income when short-term rates rise, while maintaining a relatively stable price.
• The fund's high yield may not be enough to keep up with inflation after paying taxes on distributions, so holding it in a tax-advantaged account is recommended.
• There are signs that the international bond market is rejecting U.S. Treasury securities, which could make it very hard for the Fed to reduce interest rates.
• The fund is fully covering its distribution and trades at a discount to net asset value. It may be a better holding than many think for the remainder of the year.

The Nuveen Floating Rate Income Fund ( JFR ) is a closed-end fund that income-focused investors can purchase as a means of achieving their goals. As is the case with most leveraged loan funds, this one has a significantly higher yield than most fixed-rate bond funds. As of the time of writing, the Nuveen Floating Rate Income Fund boasts an 11.68% yield. Here is how that compares to a selection of junk bond funds:

For further details see: