- Most investors consider day-to-day movements in their market values as the best measure for assessing risk of their positions.
- For CEF investors who are more concerned with income and capital preservation.
- So, we introduce some metrics to assess the yield being generated to the risk being assumed.
- We look at NII yield per unit of risk (volatility), NII yield to max draw down, total NAV return to volatility, and lastly something called Leverage Adjusted NAV yield.
- In the last section, we rank all the funds using an aggregate metric of the four risk measures.
For further details see:
Quantifying CEF Yield Risk In A Yieldless World