- PTY has continued to struggle since my last review, although its very short-term price momentum has been positive.
- I like high yield credit in general, for one that wants fixed-income exposure. Interest rate risk remains the main threat to credit and bonds, and high yield has less relative exposure.
- Credit spreads suggest there is some value here, within the U.S. and emerging markets. This could help generate interest in funds like PTY.
- Despite these positives, the premium price remains a sore point. It is difficult to find merit to buying a CEF at a 14% + premium, and that is the case as of now.
For further details see:
PTY: I Like The High Yield Exposure, But The Premium Remains A Real Concern