2024-01-30 14:19:41 ET
Summary
- Closed-end funds are currently trading at deep discounts to their net asset values.
- DoubleLine Income Solutions Fund rarely trades at a deep discount, making it a less frequent investment opportunity.
- The fund's portfolio includes a diverse range of debt securities, with a focus on high current income and capital growth.
Closed-end funds ("CEFs") trading at substantial discounts are a go-to investment class for me. At the end of 2023, they were trading at historic discounts. Currently, they are still trading at a deep discount to their net asset values. It's standard to see these investment vehicles trading below their NAVs, but the magnitude of the discount varies. For example, the discount tends to blow out during a panic. Based on XA Investments data, the 10-year historical discount is around 5.86%. The discount as of 12/31/2023 averaged 9.63%. DoubleLine Income Solutions Fund ( DSL ) is a fund I check out occasionally regardless of whether it is topping the discount tables. DoubleLine is run by Jeffrey Gundlach, and I enjoy his macro views that he shares occasionally in financial media or through firm presentations....
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DoubleLine Income Solutions: 10.54% Distribution And Differentiated Exposure