- We've seen a lot of volatility in the last month across all risk assets, but closed-end funds have weathered it quite well.
- Taxables have performed much better than municipal CEFs which have been hit on NAV from rising interest rates.
- Balancing the portfolio between credit risks and interest rate risks remains a critically-important consideration when constructing income portfolios.
- We remain steadfast that loan funds should be bought here but would hold off on buying duration (interest rate sensitive) names.
- We have some new options that we are adding to our list because we think are well-positioned. We would recommend some swapping from PHD to JFR/NSL/JRO/JSD.
For further details see:
CEF Report: State Of The CEF Market