ARDC News and Press, Ares Dynamic Credit Allocation Fund Inc. From 10/04/22

Summary The market environment of high volatility and rising short-term rates has lowered the income-generating capacity of most CEFs. In this article, we highlight the five types of CEFs whose incomes have either been unaffected or have actually improved this year. We also hi...

Summary We revisit the credit fund ARDC - a historical outperformer in the fixed-income CEF space. ARDC features an attractive income profile with significant floating-rate exposure and half of its liabilities in fixed-rate format. The fund has recently raised its distribution...

Summary Only funds with coverage >100% are considered. Top lists of discount, yield, DxY and DxYxZ are given. Top DxYxZ funds are HFRO, DHF and PHD. Author’s note: This article was released to CEF/ETF Income Laboratory members on September 19, 2022. Pleas...

Summary We review CEF market valuation and performance through the first full week of September and highlight recent market action. CEFs had a decent week as most of the space was able to easily digest higher Treasury yields. We discuss why the loan CEF sector discount has und...

Summary RIG with 5.3% income yield smashes SPY's 1.46% with 22 companies paying dividends; income is up 20.67% from May Q2 and 15.85% from Aug 2021. RIG outperforms SPY by 15.43% which was down 16.18%, with RIG value being down 0.75% YTD at the end of August. There was 1 Augus...

Summary Since 1988, FT has provided investors with a steady monthly distribution while minimizing risk to capital losses. The fund's annual yield is currently 6.5% and has provided an 8% total return at market price since inception. The fund's discount is narrowing but investo...

Ares Dynamic Credit Allocation Fund, Inc. (the “Fund”) (NYSE: ARDC) announced today the appointment of Elaine Orr to its Board of Directors (the “Board”) as an independent director and chair of the audit committee. In addition, ARDC announced today the resign...

Summary 1 out of 23 CEF sectors positive on price and 1 out of 23 sectors positive on NAV last week. MLPs lead while commodities lag. MLPs are the most discounted CEF sector. Author’s note: This article was released to CEF/ETF Income Laboratory members on Au...

Summary We review CEF market valuation and performance through the third week of August and highlight recent market action. The CEF rally petered out this week as nearly all sectors finished in the red on the back of the Fed refusing to pivot in a dovish direction. CEFs with f...

Summary With the backing and experience of Ares Credit, ARDC can leverage higher credit spreads in senior loans and CLOs to easily cover the 9% distribution. The monthly dividend was just raised by 5% and the discount to NAV has widened to -8% offering a unique buying opportunity....