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Weekly Review: High-Yield CEFs - A Slight Decrease In The First Week Of July

Published Tue, 09 Jul 2019 13:02:39 -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
Over the past shorter week, the prices of the high-yield bonds remained in red territory. The main benchmark iShares iBoxx $ High Yield Corporate Bond ETF (HYG) fell by $0.19 per share and finished the last session at $86.99 per share. On Friday, we saw a slight correction in the prices due to positive economic data which questioned the expected interest rate cut from the Federal Reserve. Also, it is important to mention that, on Monday, the index distributed its monthly dividend of $0.39 per share.

Source: Barchart, iBoxx $ High Yield Corp Bond iShares
Source: Dividend.com
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 evaluate the overall credit markets. Higher spreads indicate a higher default risk in junk bonds and can be a reflection of the overall corporate economy... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
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
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 3.16   0.0 0.00 0.27 8.52
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
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

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 - The Recession Worries Left The Sector In Negative Territory
Weekly Review: High-Yield CEFs - PCF Announced Its Dividend For The Next 3 Months
How High Yield May Reduce Portfolio Risk
Weekly Review: High-Yield CEFs - Positive Performance For The Benchmark After The Rate Cut
Weekly Review: High-Yield CEFs - Another Slight Increase For The Sector
Weekly Review: High-Yield CEFs - All Of The Funds Increased Their Prices
Weekly Review: High-Yield CEFs - Most Of The Funds Have Increased Their Net Asset Values
Weekly Review: High-Yield CEFs - Positive Performance From The Sector
Weekly Review: High-Yield CEFs - Recession Signal In Focus
Weekly Review: High-Yield CEFs - Negative Performance For The Sector

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