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Weekly Review: High-Yield CEFs - The Recession Worries Left The Sector In Negative Territory

Published Tue, 08 Oct 2019 14:30:29 -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 Definitely, one of the most volatile weeks in the last months. The first part of the week was extremely negative for the sector after the weaker than expected economic data and respectively recession worries. However, the market participants found optimism in the next several days as the unemployment rate fell to its 50-year low.
Over the first week of October, the main benchmark iShares iBoxx $ High Yield Corporate Bond ETF (HYG), which we use to track the high-yield bonds, fell by $0.64 per share and finished the Friday session at $86.43 per share. Also, it is important to mention that the main index distributed its monthly dividend of $0.35 cents per share.
The main event next week will be the meeting between the two largest economies. On the 10th of October, the U.S and China will hold a fresh round of talks in Washington, D.C. I think the outcome of this meeting will have a significant impact on the riskier assets such as high-yield bonds.

Source: Barchart, iBoxx $... 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
NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND 12.01   0.0 0.00 0.98 7.45
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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