2023-05-09 04:54:00 ET
Summary
- Flaherty & Crumrine Total Return Fund is a fixed income closed-end fund.
- The CEF focuses on financials preferred equity, and is down roughly -10% year to date, while the unleveraged fund PFF is flat on the year.
- FLC is a very robust fund from a premier asset manager in the space, but the CEF runs an enormous 42% leverage ratio for today's environment.
- The fund is trading at a -9% discount to NAV currently, but expect this level to persist until the asset class finds its footing.
- We do not currently believe the risk/reward proposition is there for a retail investor to take a leveraged view on bank preferred equity.
For further details see:
FLC: Regional Banking Crisis Exerts More Downward Pressure