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Weekly Review: High-Yield CEFs - An Extremely Positive Performance From The Sector

Published Tue, 11 Jun 2019 22:12:26 -0400 on Seeking Alpha

Introduction
The closed-end funds from the high-yield sector significantly increased their prices over the past 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
An extremely positive week for the high-yield bonds and the closed-end funds which invest in them. The idea that the Federal Reserve will cut interest rates soon was very well accepted by the market participants and helped the riskier assets to finish the week in green territory. Of course, the situation around the trade negotiations and the economic data are crucial for future actions of the central bank.
As a benchmark of the high-yield bonds, we use iShares iBoxx $ High Yield Corporate Bond ETF (HYG) to measure the performance of the sector. On a weekly basis, the main index reported an increase of $1.20 per share and finished at $86.10 per share. Also, it is important to mention that on Monday the benchmark distributed its monthly dividend of $0.39 per share.
Source: Barchart, iBoxx $ High Yield Corp Bond iShares
Source:... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
MFS INTERMEDIATE HIGH INCOME FUND 2.50   0.0 0.00 0.00 9.66
CS HIGH YIELD BOND FUND 2.49   0.0 0.00 0.00 9.16
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 3.10   0.0 0.00 0.27 8.77
MASSMUTUAL CORP INV 15.74   0.0 0.00 1.20 7.67
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND 87.17   0.0 0.00 4.59 5.33
SPDR S&P 500 ETF 293.06   0.0 0.00 3.99 1.38

MFS INTERMEDIATE HIGH INCOME FUND - CIF
MFS INTERMEDIATE HIGH INCOME FUND - CIF  


Older articles featuring Mfs Intermediate High Income Fund (CIF):
Weekly Review: High-Yield CEFs - Slight Increase For The Benchmark In The Week Before The Fed Meeting
The Dollar, High-Yield Bond Market And S&P 500 Revenue Growth
Weekly Review: High-Yield CEFs - The Sector Finished The Final Week Of May In Red Territory
Weekly Review: High-Yield CEFsĀ  - Third Consecutive Negative Week For The Benchmark
High-Yield Market Is Fairly Priced
Weekly Review: High-Yield CEFs - HYB Is A Buying Opportunity With Fully Covered Dividend
Seeking Income In High Yield Bonds
Weekly Review Of High-Yield CEFs: First Trust High Income Long/Short Fund Is 8.63%-Yielder Trading At A 12.99% Discount
Weekly Review: High-Yield CEFs - AIF Offers 8.18% Current Yield And Positive Earning/Coverage Ratio
HYG And U.S. High-Yield Market Outlook: Week Ending May 03, 2019

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