- BWG's attractive yield (7%+ at market) is matched to underlying portfolio's yield generation; not portfolio depleting or "bad" return of capital.
- Fund often reclassifies yield to a non-taxable return of capital by closing its underwater currency hedging positions as short-term losses.
- Sensible diversified bond portfolio, largely non-US government and non-US corporate bonds. Otherwise difficult for investors to efficiently access independently.
- Tender offer arbitragers recently ran the discount near 15% post-tender. This is well beyond its historical averages and exceeds closed-end bond fund peers' historical averages.
- Tender offer reduced supply of shares long term, and increased the per share capital loss carryforward.
For further details see:
Brandywine Global Income: Tax Efficient Way To Live Off Global Bond Coupons