PHT - PHT: Two Concerns But Otherwise A Very Good Junk Bond Fund

2024-04-18 18:07:35 ET

Summary

• Pioneer High Income Fund, Inc. offers a reasonably attractive yield of 8.96% at the current price.
• The PHT closed-end fund's share price has appreciated by 6.74% since August 2023, outperforming domestic bond indices.
• The fund primarily invests in high-yield corporate bonds, with most of its assets in BB and B-rated securities.
• Junk bonds have held up better than U.S. Treasury securities YTD, resulting in a declining risk premium. Any correction here poses a potential risk for shareholders.
• The PHT fund appears to be fully covering its distribution and trades at a reasonable valuation, but it is difficult to be certain how accurate its reported NAV actually is.

The Pioneer High Income Fund, Inc. ( PHT ) is a closed-end fund, or CEF, that income-focused investors can purchase in pursuit of their goals. As is frequently the case with closed-end bond funds, the Pioneer High Income Fund has a reasonably attractive yield. At least, its yield is very reasonable compared to the incredibly low bond yields that investors and savers have had to put up with over most of the 21st century. As of the time of writing, this fund yields 8.96%. Here is how that compares to some of its peers:

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