XFLT - Which CEF NAVs Have Bucked The Trend

• Interest rates have risen sharply since the start of the year, causing some pain in the markets and a significant rise in the VIX.
• With the VIX up sharply, we risk seeing discounts widen from here given how tight they are.
• But with interest rates rising across the curve, discounts are likely to rise substantially as retail investors get scared and run from CEFs.
• In this report, we analyze the CEFs that have seen their NAVs rise since the start of the year and give some picks.
• However, we would caution going all in on rising rates and perhaps using a barbell approach on interest rates.

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