2024-07-30 11:36:07 ET
Summary
- Nuveen Credit Strategies Income Fund offers a high level of current income with an attractive 11.47% yield.
- The fund invests in senior loans, high-yield corporate debt, and collateralized loan obligation debt, with a focus on floating-rate securities.
- The fund increased its floating-rate assets during the three-month period through April, which is the wrong approach if interest rates are cut.
- It is uncertain whether the fund has begun migrating its portfolio to favor fixed-rate debt, and we will not know this until after the September FOMC meeting.
- The current valuation is okay, but it is probably best to hold off on buying shares since rate cuts would hurt this fund.
The Nuveen Credit Strategies Income Fund ( JQC ) is a closed-end fund, or CEF, that income-focused investors can purchase as a method of achieving their goal of earning a high level of current income from the assets in their portfolios. The fund does fairly well in this respect, as it boasts a very attractive 11.47% yield at the current price. This yield compares quite well with most other funds that employ a similar strategy. This is shown here:
Fund Name | Morningstar Classification | Current Yield |
Nuveen Credit Strategies Income Fund | Fixed Income-Taxable-Senior Loans | 11.47% |
Ares Dynamic Credit Allocation Fund ( ARDC ) | Fixed Income-Taxable-Senior Loans | 9.49% |
BlackRock Debt Strategies Fund ( DSU ) | Fixed Income-Taxable-Senior Loans | 10.81% |
abrdn Income Credit Strategies Fund ( ACP ) | Fixed Income-Taxable-Senior Loans | 18.52% |
Blackstone Long-Short Credit Income Fund ( BGX ) | Fixed Income-Taxable-Senior Loans | 10.08% |
PIMCO Income Strategy Fund II ( PFN ) | Fixed Income-Taxable-Multi-Sector | 12.03% |
Read the full article on Seeking Alpha
For further details see:
JQC: The Fund's Current Portfolio Positioning Appears Concerning