- The current environment of expensive equity valuations and high implied volatility is particularly attractive for covered call funds relative to outright equity exposure.
- We take a look at the different decision points for investors in the sector such as benchmark tilt, call overwrite percentage, and equity benchmark drag.
- We also take a look at some of the traditional claims made for covered call funds which we find don't hold water.
- We also highlight a number of funds that look attractive such as CII, BGY, and EXG.
For further details see:
A Ripe Environment For Covered Call CEFs