JFR - JFR: The 11% Yield Is Not Enough To Give A Buy
2024-07-09 10:48:58 ET
Summary
- Nuveen Floating Rate Income Fund focuses on high-yielding fixed income securities, which enables the Fund to offer ~11% yield.
- A major driver for the double-digit yield is a significant concentration in below investment grade securities.
- Plus, most of JFR's investments are in floating rate instruments and the FOMC dot plot indicates a potential risk of yield compression.
- In this article, I elaborate on why, in my opinion, JFR is a suboptimal investment choice.
The Nuveen Floating Rate Income Fund ( JFR ) is a closed-end fund which focuses on investing in high-yielding fixed income securities to deliver attractive income streams. As is usually the case, achieving capital appreciation is a secondary objective....
JFR: The 11% Yield Is Not Enough To Give A Buy