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Weekly Review: High-Yield CEFs - Negative Performance For The Sector

Published Tue, 13 Aug 2019 23:22:30 -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 week, the main benchmark iShares iBoxx $ High Yield Corporate Bond ETF (HYG) fell slightly by $0.14 per share and finished the last session at $86.25 per share. The market participants continue to be concerned about the economic slowdown and protracted trade dispute between the United States and China. When the economic situation is not stable and volatile we are used to seeing a decrease in the prices of the high-yield bonds and closed-end funds which invest in them due to their lower-quality credit ratings.

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 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
CS HIGH YIELD BOND FUND 2.58   0.0 0.00 0.00 8.87
FIRST TRUST HIGHOME LONG/SHORT FUND 14.97   0.0 0.00 0.00 8.82
PIONEER HIGH INCOME TRUST 9.29   0.0 0.00 0.00 8.72
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 - Positive First Week Of The Year
Weekly Review: High-Yield CEFs - Strong Start Of 2020 For The Benchmark
Weekly Review: High-Yield CEFs - New Fresh Annual High For The Benchmark
Retirement Strategy: Time To Tread Cautiously With High-Yield
Weekly Review: High-Yield CEFs - The Benchmark Reached Its Highest Price For The Year
Weekly Review: High-Yield CEFs - The Benchmark Distributed Its Monthly Dividend Of $0.34 Per Share
Part 2: Misery In CLOs Without The Company Of High Yield
Weekly Review: High-Yield CEFs - Most Of The Funds Increased Their Net Asset Values
Weekly Review: High-Yield CEFs - Lack Of Appetite For High-Yield Opportunities
Weekly Review: High-Yield CEFs - Slight Increase For The Benchmark

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