ARDC News and Press, Ares Dynamic Credit Allocation Fund Inc. From 03/10/21

For credit markets, the returns just kept coming in 2020 once the Fed stepped in with its strong policy support in late March. With strong returns in the fourth quarter, both investment grade and high yield corporate markets in the U.S. ended the year with positive returns over equiva...

Rising rates are such a problem for gold bullion that gold bullion and major gold stocks are where they were before the COVID pandemic crashed the U.S. stock market at this time last year. In other words, they have wiped out all the pandemic gains. The bid in the dollar is significant...

Only funds with coverage >100% are considered. Top lists of discount, yield, DxY and DxYxZ are given. The top DxY funds are CEV, JPC, and DSL. For further details see: The Quality Closed-End Fund Report, February 2021

For investors seeking income, appreciation, or diversification benefits, fixed income strategies are core components of a well-rounded asset allocation. In particular, we are optimistic about the high yield market-and believe that the opportunities can be maximized with active, risk-c...

The loan space continues to see inflows which should be supportive of NAVs. As NAVs increase, they can increase leverage supporting distributions. Loan funds remain one of the cheapest asset classes in the CEF spectrum with five-year z-scores that are barely positive. We like KIO ...

The high-yield CEF sector has done well though not as well as other sectors in terms of discount returns in the last month (+1.3%). The sector as a whole is near its long-term fair value with a discount of -5%. But with spreads near the pre-COVID tightest levels, there isn't much upsi...

Why the run-up in rates has troubled equity markets more than credit, and why we think that is poised to continue. Since the start of the fourth quarter of 2020, the U.S. 10-year yield has risen by more than 80 basis points while the spread of the ICE Bank of America U.S. Corporate BB...

The recent rise in Treasury yields has spooked the equity markets. This is obvious from the recent performance of the bond markets as compared to the stock markets. Inflation is not the cause of this rise, but rather a combination of the stimulus measures, a rebounding economy, our CO...

The Income Factory® philosophy has gained wide acceptance here on Seeking Alpha and elsewhere, but there was lots of resistance when I first introduced the concept about a decade ago. The idea that "income drives wealth" is one that goes back centuries in economics and literature...

These are two options in the high-yield sector that look at least semi attractive at these levels for various reasons. These funds are more hybrid funds like ARDC with some allocation to leveraged loans helping to diversify the portfolio. The high-yield space, as I've noted severa...