- We take a look at the high-yield CEF sector which enjoys an above average yield across the CEF space and a still reasonable discount valuation.
- The sector is facing a key challenge of record low yields in the underlying bonds which has a number of knock-on impacts.
- Record high fees as a proportion of portfolio yields, low excess yields and less margin of safety due to tight credit spreads call for certain investor tilts which we discuss.
- We also highlight a number of sector CEFs that continue to look reasonably attractive such as EAD, CIK and DHY.
For further details see:
High Yield CEF Sector Update