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Weekly Review: High-Yield CEFs - Another Slight Increase For The Sector

Published Wed, 18 Sep 2019 03:29:22 -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
The positive impact of the potential trade talks between the U.S. and China helped the high-yield bonds to finish the week in green territory. Last month most of the market participants were concerned about the new tariffs which were imposed, the inverted yield curve and the grim diagnosis for GDP growth. Currently, the investors reassessed their recession concerns and they seem interested in riskier assets which may help them to achieve higher returns.
Тhe main benchmark iShares iBoxx $ High Yield Corporate Bond ETF (HYG), which we use to track the high-yield bonds, rose by $0.02 per share and finished the Friday session at $87.16 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 U.S. Treasury bond. High-yield spreads are used by investors and market analysts to evaluate the overall credit... 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
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 3.16   0.0 0.00 0.27 8.52
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 - 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
Weekly Review: High-Yield CEFs - Lack Of Significant Changes Among The Funds
Weekly Review: High-Yield CEFs - The Price Of The Benchmark Left In Red Territory
Spotlight On High Yield Credit Amid Declining Yields In Fixed Income Markets
Weekly Review: High-Yield CEFs - The Benchmark Is Close To Its Highest Annual Levels
When High Yield Isn't High: After-Tax ETF Returns
Weekly Review: High-Yield CEFs - The Benchmark Increased Its Price
Weekly Review: High-Yield CEFs - The Recession Worries Left The Sector In Negative Territory

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