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CEFL And Other Diversifiers For A 15%+ Current Yield Portfolio

Published Tue, 02 Apr 2019 18:49:21 -0400 on Seeking Alpha

The Need For Diversification Risks in the securities markets seem to be increasing daily. One way to reduce risk is diversification. In 30% Yielding MORL, MORT And The mREITS: A Real World Application And Test Of Modern Portfolio Theory, the degree of risk reduction provided by diversification was discussed. Even when a portfolio consists of many securities that have somewhat similar characteristics and have significant amounts of correlation, diversification can be beneficial.
I have attempted to utilize my longer-term macroeconomic interest rate outlook to manage a high current yield portfolio, given some very significant constraints. The most important constraint is to only include securities with current yields above 15%. Other constraints are the typical retail IRA account restrictions which preclude the use of short-selling, margin borrowing, and futures contracts. Some brokerage firms also impose additional constraints on IRA accounts. I suspect that there are many individuals, particularly those either partially or totally retired, who either have somewhat similar constraints or could possibly benefit from adopting them.
Given those constraints, the universe of possible investments is very limited. Other than junk bonds and other securities issued by individual distressed entities, in order to meet the 15%+ constraint, my primary investment focus in the quest for 15%+ current yield has been and is on 2x Leveraged High-Yield ETNs. As described in my 2013 Seeking Alpha... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
OXFORD LANE CAPITAL 10.75   0.0 0.00 1.62 15.08
TORTOISE MLP FUND 13.57   0.0 0.00 0.00 12.38
TORTOISE ENERGY INFRASTRUCTURE 23.01   0.0 0.00 2.62 11.29
LIBERTY ALL STAR EQUITY FUND 6.54   0.0 0.00 0.82 9.94
WELLS FARGO ADV INCOME OPP FUND 8.18   0.0 0.00 0.00 8.59
TEMPLETON EMERGING MARKETS INCOME FUND 10.25   0.0 0.00 0.00 7.71
WESTERN ASSET HIGH INCOME OPPORTUNITY FUND 5.05   0.0 0.00 0.00 6.97
EATON VANCE SENIOR FLOATING-RATE TRUST 13.07   0.0 0.00 0.00 6.96
ING PRIME RATE TRUST 4.78   0.0 0.00 0.00 6.74
UBS 12.13   10.6 1.15 0.00 5.70

OXFORD LANE CAPITAL - OXLC
OXFORD LANE CAPITAL - OXLC  


Older articles featuring Oxford Lane Capital (OXLC):
My Dividend Growth Portfolio At The Half Year Mark
Which CLO Funds To Buy And Which To Avoid, With Yields Up To 16%: OFS Credit
July's Monthly Dividends From 89 U.S. Equities And 80 Funds
How To Invest In ETFs And CEFs For High Yield And Income
3 High-Yield Choices To Buy On Pullback, Yields Up To 15.3%
High-Yield Investing: Federal Reserve Cutting Rates - Here's What You Should Do
Why We Are Invested In These Super High Dividends - Yields Up To 16.2%
More Candidates For The 15%+ Current Yield Portfolio
Your June MoPay Dividends From 95 U.S. Equities And 80 Funds
Fully Covered 9.5% Yield, A CLO/Debt Trust Managed By XFLT, A Top U.S. CLO Manager

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