Dividend-News
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Weekly Review: High-Yield CEFs - 9% Yielder Is Traded At 14% Discount
Published Wed, 28 Nov 2018 16:33:37 -0500 on Seeking Alpha
Introduction The opportunities in closed-end funds over the last few months caught the eye of many investors. Most of these products are designed to provide a steady stream of income, usually on a monthly or quarterly basis, as opposed to the biannual payments provided by individual bonds. And this feature continues to attract market participants even when the overall market looks unstable.
In spite of CEFs being mostly of interest to income investors, we have found our path to approach them as active traders, and we are constantly monitoring them. As a testament to this, you will be kept up to date with Weekly Reviews such as the one below.
The Benchmark As you know, on Black Friday you can buy cheaper. This was valid for the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), as well. On a weekly basis, the price of the benchmark fell by $0.56 after another sell-off in the stock market. The trust in the equities and credit situation remains weak. The main index of high-yield sector reached its lowest level for the last three years. The previous time when we saw hitting of this price level was at the end of 2015.
Source: Barchart, iBoxx $ High Yield Corp Bond iShares
Statistical Comparison And Spread Review Of The Sector High-yield bonds are typically evaluated on the difference between their yield and the yield on the US Treasury bond. High-yield spreads are used by investors and market analysts to evaluate the overall credit markets. Higher spreads indicate... Read more
| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DREYFUS HIGH YIELD STRATEGIES | 3.07 | 0.0 | 0.00 | 0.27 | 9.63 | |||||||
| MFS INTERMEDIATE HIGH INCOME FUND | 2.68 | 0.0 | 0.00 | 0.00 | 9.08 | |||||||
| FIRST TRUST HIGHOME LONG/SHORT FUND | 14.97 | 0.0 | 0.00 | 0.00 | 8.82 | |||||||
| PIONEER HIGH INCOME TRUST | 9.29 | 0.0 | 0.00 | 0.00 | 8.72 | |||||||
| CREDIT SUISSE ASSET MANAGEMENT INCOME FUND | 3.16 | 0.0 | 0.00 | 0.27 | 8.52 | |||||||
| MASSMUTUAL CORP INV | 16.54 | 0.0 | 0.00 | 1.20 | 7.27 | |||||||
| ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND | 11.78 | 0.0 | 0.00 | 0.00 | 6.68 | |||||||
| ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND | 87.32 | 0.0 | 0.00 | 4.60 | 5.27 | |||||||
| SPDR S&P 500 ETF | 301.29 | 0.0 | 0.00 | 5.42 | 1.82 |