SPY - Weekly Review: High-Yield CEFs - Lack Of Appetite For High-Yield Opportunities
Introduction
The closed-end funds from the high-yield sector significantly increased their prices over the past months. Currently, most of them are traded at positive Z-scores, which is an indication that they have lost most of their statistical edge. Still, they are traded at high discounts, but we are cautious when we select our positions, due to the lack of statistical edge. For me, personally, I am in a waiting mode to see a statistical opportunity to review some of the funds.
The Benchmark
Usually, we do observe a strong correlation between the high-yield bonds and