General market sentiment has become downright dour in the last month, but you wouldn't know it by looking at movements in CEF discounts. Typically, when we see market volatility and especially when we see high-yield spreads in the bond market widen, the double-edged sword that is closed-end fund discounts widens, sending pricing down faster than the NAVs. However, in the month of May, when the S&P 500 fell by more than 6%, discounts actually tightened by approximately 30 bps.
In our June letter, we advised members to hold steady as this could just be the