- We continue to discuss funds that are showing strong NAV momentum and trade at a wider than the sector discounts plus have higher yields.
- Barings Short Duration High Yield (BGH) is just one of those funds. The NAV momentum is fantastic. The yield is still much better than the HY sector avg.
- The yield is safe given the strong coverage ratio and large UNII balance.
- But beware, the portfolio is junky with a large amount of CCC rated debt. I call CCC "equity-lite" because it moves a lot with stocks.
For further details see:
BGH - A Fund That Checks All Our Boxes