MCI - MCI: Contains Junk Rated Debt That Outperforms The S&P In Total Return

2024-04-06 06:24:12 ET

Summary

• Barings Corporate Investors is a closed-end fund that focuses on high-yielding corporate debt securities.
• MCI has outperformed the S&P 500 in total return since its inception in 1971, with a current dividend yield of 8.7%.
• The fund's portfolio primarily consists of private bank loans and floating rate debt, allowing it to benefit from higher interest rates. However, the portfolio consists of junk-rated companies.
• The price currently trades at a slight premium to NAV of 2.5% but I believe this to still be a great entry point.

Overview

When most people think of Closed End Funds, they think of disgusting looking price charts that have gone down substantially over a large period of time. There are different kinds of closed end funds, each with their own respective focus and goal in mind. We have CEFs that focus on corporate debt, real estate, commodities, covered calls, and specialty credit for example. However, the fund we will be reviewing today focuses on corporate debt securities; high yielding bonds that are issued by corporations....

For further details see: