CEF Weekly Review: BlackRock And Saba Reach Standstill Agreement

2025-02-01 06:05:58 ET

Summary

• We review the CEF market valuation and performance through the fourth week of January and highlight recent market action.
• Most CEF sectors saw gains, with MLPs leading; January's strong performance nearly offsets December's losses.
• BlackRock and Saba's standstill agreement includes significant buybacks for BIGZ and BMEZ, tightening discounts but likely widening post-tender offers.
• PIMCO Dynamic Income Strategy Fund's valuation remains attractive despite volatility from its large VG position and higher management fees.
• We rotated from DHY to XFLT due to the latter's unusual discount.

Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund ("CEF") market activity from both the bottom-up – highlighting individual fund news and events – as well as the top-down – providing an overview of the broader market. We also try to provide some historical context as well as the relevant themes that look to be driving markets or that investors ought to be mindful of....

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