JFR - JFR: Earn 10%+ With Monthly Distributions And Reversion To Mean CEF Discount
Investment Thesis:
Nuveen’s Floating Rate Income (JFR) fund has the potential yield +/- 12% over the next 12 months through a combination of monthly distributions (currently an annualized 7.6%) and potential discount narrowing (to net asset value). The investment thesis assumes we avoid a global recession and destructive trade war and investors reverse the dramatic outflows from loan funds which began in late November and accelerated through year end.
Source: Bloomberg
Background:
Floating rate securities, like the Nuveen Floating Rate Income (JFR) fund, have frequently served as a bond alternative in