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Weekly Review: High-Yield CEFs - A Slight Retracement For The Benchmark

Published Wed, 03 Jul 2019 07:36:26 -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. For me personally, I am in a waiting mode to see a statistical opportunity to review some of the funds.
The Benchmark
A week ago, the main benchmark iShares iBoxx $ High Yield Corporate Bond ETF (HYG) reached the new highest level for the current year. Over the last five days of June, the main index has pushed away from its peak after its price fell by $0.15 per share. The investors are focused on the G-20 meeting and precisely on global trade developments between the two largest economies. If we see a positive outcome this may be a stimulating factor for the prices of the riskier assets such as high-yield bonds.

Source: Barchart, iBoxx $ High Yield Corp Bond iShares
I would like to spend some time covering several advantages of high-yield bonds and closed-end funds, which invest in this asset class. As the high-yield sector generally has a low correlation to other sectors of the fixed-income market, along with less sensitivity to interest rate risk, an allocation to high-yield bonds may provide portfolio diversification benefits. In addition, high-yield bond investments have... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
MFS INTERMEDIATE HIGH INCOME FUND 2.53   0.0 0.00 0.00 9.54
CS HIGH YIELD BOND FUND 2.52   0.0 0.00 0.00 9.08
DREYFUS HIGH YIELD STRATEGIES 3.07   0.0 0.00 0.28 9.02
PIONEER HIGH INCOME TRUST 9.48   0.0 0.00 0.00 8.64
WELLS FARGO ADV INCOME OPP FUND 8.24   0.0 0.00 0.00 8.57
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 3.13   0.0 0.00 0.27 7.83
NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND 11.77   0.0 0.00 0.86 7.38
ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND 11.93   0.0 0.00 0.00 6.61
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND 86.70   0.0 0.00 4.60 5.28
SPDR S&P 500 ETF 297.74   0.0 0.00 5.42 1.80

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 - BGH Announced Its Monthly Dividend For July 2019 Of $0.1482 Per Share
Low Yield, No Yield, Negative Yield - Buy Now, But Don't Forget To Sell
Weekly Review: High-Yield CEFs - A Slight Decrease In The First Week Of July
Weekly Review: High-Yield CEFs - New Fresh High For The Sector
Weekly Review: High-Yield CEFs - Slight Increase For The Benchmark In The Week Before The Fed Meeting
Weekly Review: High-Yield CEFs - An Extremely Positive Performance From The Sector
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

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