- With valuations tightening and a number of risks on the radar, it makes sense to take a margin-of-safety approach to income portfolios.
- In this margin-of-safety installment, we discuss allocating to fixed-income CEFs with a more stable historic income profile paired with a strong coverage level.
- This combination of factors should allow the income-generating capacity of these funds to remain relatively resilient in light of rising risks to CEF income levels.
- It may also keep distributions relatively stable, particularly outside of the term CEF population.
- We highlight the Invesco pair of CMBS CEFs IHIT and IHTA, 2 Credit Suisse high-yield corporate funds CIK and DHY, the cross-credit KKR fund KIO, and the limited duration fund BGH.
For further details see:
CEF Income Margin-Of-Safety Opportunities