2024-02-08 06:57:24 ET
Summary
- DoubleLine Income Solutions Fund provides an attractive monthly distribution, coming in at a double-digit yield.
- The fund's distribution coverage slipped last year due to rising borrowing costs, but coverage could improve with expected rate cuts.
- DSL's portfolio is moderately leveraged and has a significant weighting to emerging markets, though it could still be considered a multi-sector fixed-income fund.
Written by Nick Ackerman, co-produced by Stanford Chemist.
DoubleLine Income Solutions Fund (DSL) provides an attractive monthly distribution to its investors. A double-digit yield is always exciting, but the distribution coverage is a bit lacking, and we saw the coverage slip last year. The slipping coverage was a reduction in net investment income due in part to rising borrowing costs on its leverage. That said, the fund could be set to see coverage head back in the positive direction, with the Fed expected to cut rates this year and into the next.
It has been around a year since we covered DSL , going back to our January 2023 article. However, we also touched on this fund mid-year 2023 when we looked at a recap of the DoubleLine trio. Since the DSL focus article, though, the fund's performance has been quite respectable on a total return basis....
Read the full article on Seeking Alpha
For further details see:
DSL: Attractive Distribution With Good Prospects But Around Fair Value