Deep and rapid shifts in asset markets have been making themselves felt in CEF distributions. Different CEF sectors have different sensitivities to changes in short-term rates, asset price levels, increased volatility and defaults. On a more micro level, funds have different leverage mandates and types of leverage facilities with varying impacts on fund earnings and, by consequence, distributions. In this article, we take a look at some of these macro shifts and micro features alongside some CEF options that should hold up relatively well on the earnings front. We highlight the following funds:
- BlackRock MuniEnhanced