OXLCP - Leaning To CEF Sectors With Stronger Distribution Profiles

The last few weeks have seen very sharp moves in asset prices. Apart from hammering prices of risky assets, these shifts across assets have also impacted sector distributions to varying degrees. In this article we take a look at these impacts as well as discuss sectors are likely to boats more resilient distribution profiles. Our main takeaway is that in this current environment we would selectively tilt to fixed-rate, longer-duration, higher-quality assets with lower call risk. We discuss a number of sectors with this profile and highlight a few funds:

• Western Asset Municipal Defined Opportunity

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