Author's note: This article was released to CEF/ETF Income Laboratory members on February 10, 2020. Please check latest data before investing.
Why are discounts so narrow?
In our The Chemist's Closed-End Fund Report, February 2020: Entering Slightly Overpriced Territory, we noted that average closed-end fund discounts had contracted to less than -3%. Because this is even narrower than when I first started keeping track of the CEF universe, I used CEF Alpha to see when valuations were this high. This turned out to be somewhere during early 2013. In other words, CEF valuations are