DYFN - Weekly CEF Commentary April 11 2021: CEF Discounts Tighten To Levels Not Seen Since 2013

• Large-cap stocks hit new highs on strong data with record highs set several times during the week and finished very strong rising 300 points on Friday.
• Discounts on taxable bond CEFs are now very close to NAV. My calculation (which adjusts for the massive premiums on the CLO funds) shows the space at -0.82%.
• There's only one fund left with a negative one-year z-score, the Western Asset Income (PAI). The discount of -5.4% is compelling if you want IG bond fund paying 3.8%.
• Other "cheaper" funds include TCW Strategic Income, BlackRock Taxable Muni and Guggenheim Tax Muni & Inv Grade Bond.
• As Howard Marks likes to state, when investors have zero consideration for risk, the future returns of these investments will be lower.

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