PTA - JPC: Preferred Exposure With ~8% Distribution Yield
2024-05-09 22:46:02 ET
Summary
- Nuveen Preferred & Income Opportunities Fund is the largest preferred closed-end fund (CEF) on the market, providing plenty of daily liquidity for most investors.
- JPC offers an attractive distribution yield of around 8% and has shown relatively strong distribution coverage, though not quite 100% yet.
- The fund's discount is historically wide but consistent with its peers in the higher rate environment, where preferred securities are more out of favor.
Written by Nick Ackerman, co-produced by Stanford Chemist.
Last fall, Nuveen Preferred & Income Opportunities Fund ( JPC ) became a meaningfully larger fund after absorbing its two similar Nuveen preferred closed-end fund sister funds. This pushed it to become the largest preferred CEF on the market by over double in terms of net assets under management, which comes to about $2.246 billion. That makes it the 13th largest CEF overall. When including leverage in the form of borrowings, reverse repo and variable remarketed rate preferred, it becomes even larger with a total size of $4.108 billion....
JPC: Preferred Exposure With ~8% Distribution Yield