ACP: 15%+ Yield, 6% Discount

2025-01-13 09:15:00 ET

Summary

• The abrdn Income Credit Strategies Fund focuses on high current income and capital appreciation by investing in global debt and loan instruments, primarily below investment grade.
• ACP's dividend cut and underperformance relative to the Morningstar US CEF Senior Loans category, coupled with market pressures, lead to a Sell recommendation at this time.
• ACP's fiscal year 2024 saw a 63% increase in net investment income, and a 65% reduction in net losses.

The abrdn Income Credit Strategies Fund ( ACP ) is a closed end fund, "CEF", which invests in credit obligations on a global basis. We last covered ACP in an article back in September 2024, when we rated it as a buy:

"ACP yields over 18%, pays monthly, and sells at a 3% discount. With interest rates coming down, its high yield debt holdings have become more attractive."

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