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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 9.73   0.0 0.00 1.62 16.65
TORTOISE MLP FUND 12.38   0.0 0.00 0.00 13.55
TORTOISE ENERGY INFRASTRUCTURE 20.77   0.0 0.00 2.62 12.48
LIBERTY ALL STAR EQUITY FUND 6.38   0.0 0.00 0.65 10.30
WELLS FARGO ADV INCOME OPP FUND 8.20   0.0 0.00 0.00 8.61
TEMPLETON EMERGING MARKETS INCOME FUND 9.22   0.0 0.00 0.00 8.54
EATON VANCE SENIOR FLOATING-RATE TRUST 12.99   0.0 0.00 0.00 7.02
WESTERN ASSET HIGH INCOME OPPORTUNITY FUND 5.07   0.0 0.00 0.00 6.98
ING PRIME RATE TRUST 4.70   0.0 0.00 0.00 6.67
UBS 11.53   9.8 1.18 0.00 5.93

OXFORD LANE CAPITAL - OXLC
OXFORD LANE CAPITAL - OXLC  


Older articles featuring Oxford Lane Capital (OXLC):
10% Yield: Why I 'Sleep Well At Night' With A 100% High-Yield Portfolio - Part 2
86 Monthly Paying Top-Yield Dividend Dogs And 80 Funds For December
A Quick Look At Some High-Yielding CEFs With >100% Distribution Coverage
10% Yield; Why I 'Sleep Well At Night' With A 100% High Yield Portfolio
CLO Funds: A Deeper Look At NAVs With Yields Up To 17%
90 Monthly Paying Top Yield Dividend Dogs And 80 Funds For November
XFLT: 10% Yield, Monthly Pay, Powered By CLOs And Senior Secured Loans, Fund Has Phenomenal Managers
HFRO: Pullback And 7.4% Yield Create Buying Opportunity This High-Quality CEF
2019 Third Quarter Update, 10% Yield; Rare BUY-Signal Revealed, POT5.7 Release
Pullback And 15% Yield Create Unique Buying Opportunity For ECC

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