NPFD - NPFD: This Preferred CEF Will Have Its Day
2024-02-23 12:45:22 ET
Summary
- Different funds within the same sector often have different tilts, which can impact their performance in different market scenarios.
- The Nuveen Variable Rate Preferred & Income Fund has a unique coupon profile, with a low allocation to fixed-rate preferreds and a relatively large allocation to fixed-to-floating preferreds.
- We discuss the various market scenarios which would benefit the NPFD CEF.
An important concept in closed-end fund, or CEF, allocation is that different funds within the same sector often have different tilts, i.e., structural features or risk exposures . This often escapes analysts who, after a strong run by a given fund, start calling it "best-of-breed," despite the fact that the fund's strong performance is largely a function of its tilt....
NPFD: This Preferred CEF Will Have Its Day