VVR - VVR Will Continue To Deliver A 12% Yield Until The Fed Cuts
2024-06-30 23:45:51 ET
Summary
- Invesco Senior Income Trust is a successful fixed-income closed-end fund with an outstanding total return since last year.
- VVR holds mostly first lien loans and has a well-covered distribution standing at 88% on a fiscal year basis.
- The fund's premium to NAV is a concern, expected to decrease when the Fed starts cutting rates, impacting both distributions and premium.
- The CEF is a 'Hold' in an investor's portfolio until we see the first-rate cut from the Fed.
Thesis
The Invesco Senior Income Trust ( VVR ) is a fixed income closed end fund. The vehicle is one of our favorite plays in the leveraged loan market, having covered it for a while now. In our last article 12 months ago, we highlighted the robustness of the structure in light of a high rate environment and assigned a 'Hold' rating to the name. The fund has delivered ever since for holders:
Prior Rating (Seeking Alpha)