SDHY - SDHY: A Strong Buy For Sizeable Term NAV Revert
2024-05-06 09:24:26 ET
Summary
- PGIM Short Duration High Yield Opps (SDHY) is a CEF with a deep NAV discount 12.55% and a high dividend yield of 8.6%.
- SDHY is a term fund to liquidate at NAV in 2029, it will kick off a price run-up to close the NAV discount gap. A great buy opportunity.
- The high leveraged fund, with focuses on short duration high yield corporate bonds, could be in a sweet spot with moderate cut expected and a resilient economy.
Introduction
As part of my fund-based approach to build a reliable high-yield income portfolio, CEFs often have my attentions and running high on my watch list because many CEFs still have the NAV discount at the historical wide level. 2024 looks promising for some of those CEFs to stage a recovery run in narrowing the NAV gap....
SDHY: A Strong Buy For Sizeable Term NAV Revert