BGIO - Term CEF Ladder #2: Mortgage Closed-End Funds Explored
The first article in this series, which introduced the idea of a Term CEF Ladder and takes a more top-down approach to the markets, can be found here.
As a quick refresher, there are 43 CEFs with scheduled “Term” dates around which time each trust is scheduled to liquidate. We postulate that a selection of these funds may help us achieve enhanced yield relative to plain vanilla fixed-income products. Due to the nature of Term CEFs, this enhanced yield may be achieved without assuming much duration risk, if our theory is correct. At the