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Weekly Review: High-Yield CEFs  - Third Consecutive Negative Week For The Benchmark

Published Tue, 28 May 2019 14:40:12 -0400 on Seeking Alpha

Introduction
The closed-end funds from the high-yield sector significantly increased their prices over the past four 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. Me personally, I am in a waiting mode to see a statistical opportunity to review some of the funds. If the stock market situation remains hesitant and we observe increased volatility, we may see some decline in the prices of the high-yield bonds.
The Benchmark
The trade war situation and the decline of the crude oil were the main factors which reflected on the prices of the equities and the high-yield bonds. In periods of uncertainty, we observe a strong relationship between the movements of the stock market and the high-yield bonds. Even though they are bonds, the high-yield sector is highly sensitive due to its lower credit quality. The price of the benchmark iShares iBoxx $ High Yield Corporate Bond ETF (HYG) declined by $0.29 and finished the Friday session at $85.65 per share.

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... 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
WELLS FARGO ADV INCOME OPP FUND 8.20   0.0 0.00 0.00 8.61
WA HIGH INCOME FUND II 6.76   0.0 0.00 0.00 8.27
MASSMUTUAL CORP INV 16.54   0.0 0.00 1.20 7.27
WESTERN ASSET HIGH INCOME OPPORTUNITY FUND 5.07   0.0 0.00 0.00 6.98
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

DREYFUS HIGH YIELD STRATEGIES - DHF
DREYFUS HIGH YIELD STRATEGIES - DHF  


Older articles featuring Dreyfus High Yield Strategies (DHF):
BNY Mellon High Yield Strategies Fund Declares Dividend
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BNY Mellon High Yield Strategies Fund Declares Dividend

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