TBB - TSI: This Multi-Sector Bond Fund Is Nothing Special

2024-06-24 06:04:12 ET

Summary

• TCW Strategic Income offers a 5.10% yield, lower than its peers, reducing its appeal to income-seeking investors.
• The fund has generally underperformed its peers, but it did not decline as severely as most back in 2022.
• TSI aims to provide total return through current income and capital appreciation, with a focus on mortgage securities and corporate bonds.
• The fund does have some equity exposure, but it is much smaller than its bond allocation, and overall, we should expect this fund to behave like a fixed-rate bond fund.
• The fund appears to be covering its distribution and trades at a discount to net asset value.

The TCW Strategic Income ( TSI ) is a very underfollowed closed-end fund that income-seeking investors can use to earn a high level of income from the assets in their portfolios. This is a common objective among retirees or anyone else who needs extra money to maintain their lifestyles in today's highly inflationary environment, so this is likely to be an attractive proposition. Unfortunately, the TCW Strategic Income only has a 5.10% yield at the current price, so it does not appear as appealing as many of its peers. We can see this quite clearly here:

For further details see: