SDHY - SDHY: High-Yield Short-Duration Focused CEF At A Discount
2024-02-16 15:41:05 ET
Summary
- The PGIM Short Duration High Yield Opportunities Fund is a potential investment option for investors seeking some protection in the volatile interest rate environment.
- The latest inflation report coming in hot once again has shifted the focus to rates being "higher for longer."
- SDHY has shown respectable performance in terms of its underlying portfolio and is also trading at a fairly attractive discount.
Written by Nick Ackerman, co-produced by Stanford Chemist.
As the latest inflation report came in hot , it has once again put a damper on the market's expectation for rate cuts to happen in the near term. For the most part, the Fed has remained rather consistent in mentioning specifically that they are looking at the data before making any moves. Their own projections had shown an expectation for three rate cuts through 2024. We'll get the next projection material in the March meeting, and by then, the Fed will have more data to work with. Though rate cuts aren't guaranteed, that still seems like a reasonable expectation as long as CPI doesn't start trending higher once again....
SDHY: High-Yield Short-Duration Focused CEF At A Discount