BWG - The Chemist's Quality Closed-End Fund Report - October 2018: This Senior Loan Fund Has Increasing NII And Great Coverage
Quantitative screens help to rapidly narrow down attractive candidates from the database of 500-plus closed-end funds (CEFs) for further due diligence and investigation.
It seems that a very many number of investors, understandably, place a great emphasis on coverage and return of capital. While I'm not going to rehash the entire ROC argument here (it is suffice to say that the issue is much more complicated than "ROC = bad"), some investors may consider a fund with over 100% coverage to be attractive simply because they know that the distributions are being covered by earnings.