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Weekly Review: High-Yield CEFs - IVH Is An Attractive Combination Of Discount And Current Yield
Published Thu, 04 Apr 2019 09:48:00 -0400 on Seeking Alpha
Introduction
The closed-end funds from the high-yield sector significantly increased their prices over the past three months. Currently, most of them are traded at positive Z-scores, which is an indication that they have lost most of their statistical edge. Still, they are traded at high discounts, but we are cautious when we select our positions due to the lack of statistical edge. I still see several interesting buying opportunities in the sector, which I am going to discuss with you in this article. Ivy High Income Opportunities Fund (NYSE: IVH) is one of the funds which caught my eye. It offers an attractive current yield and is traded at a high discount.
The Benchmark
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) continues its climbing after another positive week in its records. The price of the main benchmark rose by $0.63 to finish the week at $86.47 per share. We find key resistance levels around the levels of $86.50 per share, which were tested several times in 2018 and were not broken. So, it is very interesting to see if the benchmark of the high-yield bonds can make it this time. If we see a breakout in the next several weeks, this may be accepted as an indication for the confidence in the credit stability of the companies and their high-yield bonds.
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... 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 | |||||||
| CS HIGH YIELD BOND FUND | 2.58 | 0.0 | 0.00 | 0.00 | 8.87 | |||||||
| WELLS FARGO ADV INCOME OPP FUND | 8.20 | 0.0 | 0.00 | 0.00 | 8.61 | |||||||
| BLACKROCK CORPORATE HIGH YIELD FUND VI | 10.76 | 0.0 | 0.00 | 0.00 | 8.01 | |||||||
| 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 |