Seeking Alpha

Convergence Investments

 
View as an RSS Feed
View Convergence Investments' Articles BY TICKER:
  • In Search Of Income: Municipal Bond CEFs (Part II)
    Tue, Jan. 20 BFZ, BTT, EIM 21 Comments

    Summary

    • Municipal bond funds currently offer high-tax-bracket investors with very attractive yields that can exceed 10% on a taxable-equivalent basis.
    • Potential muni fund investors should consider, among other factors, yield, duration, and expense ratios when selecting from the more than 150 muni CEF choices.
    • We recommend VCV and MCA to California-based investors, and MYI and VGM to non-Californians as well balanced choices for tax-free income.
  • In Search Of Income: Municipal Bond CEFs (Part I)
    Mon, Jan. 12 MUNI 11 Comments

    Summary

    • Municipal bond funds currently offer exceptional income generation - especially for investors in high tax states like California, New York, and New Jersey.
    • Muni bond funds typically carry high sensitivity to interest rates (high average duration) but relatively low default risk.
    • Wide average discounts in the muni CEF sector create an attractive entry point for investors seeking tax free income.
  • In Search Of Income: Covered Call CEFs (Part II - Specific Funds)
    Wed, Jan. 7 BDJ, BGY, BOE 25 Comments

    Summary

    • There are 20+ covered call CEFs that Convergence Investments considers potentially investable.
    • Funds can be measured and should be evaluated based on income generation, NAV performance, valuation, and a variety of other factors.
    • We currently find BDJ, ETJ, and NFJ to be well balanced, attractive funds worthy of investor consideration.
  • In Search Of Income: Covered Call CEFs (Part I - Sector Analysis)
    Tue, Jan. 6 B, BDJ, BGY 17 Comments

    Summary

    • Covered call closed-end funds are popular among CEF investors for their ability to generate significant and relatively consistent income with reduced equity market risk.
    • However, the sector has lagged other equity CEF types in the past year and is currently out of favor.
    • Discounts widened significantly in December to about 8% (in aggregate), making this an attractive time to establish a position in covered call CEFs.
  • In Search Of Income: High-Yield Bond CEFs (Part II)
    Dec. 19, 2014 AIF, AWF, BGH 10 Comments

    Summary

    • High yield bond closed-end funds have experienced tremendous recent price volatility, creating a potentially attractive entry point for income seeking investors.
    • The dozens of funds classified as "high yield bond funds" differ greatly in returns generated and risk factors they contain.
    • We highlight DSU, CIK, and HYT as three high-yield funds with well balanced risk and reward profiles.
  • In Search Of Income: High-Yield Bond CEFs (Part I)
    Dec. 16, 2014 AIF, AWF, BGH 17 Comments

    Summary

    • High-yield bond closed-end funds have experienced a significant sell-off in the first half of December as the markets digest concerns about the falling cost of oil.
    • This fund sector offers some of the highest income potential of any fixed-income CEFs for investors willing to bear the credit risk and beta risk inherent in them.
    • Current depressed fund values - and relatively wide discounts to fund values - make this an attractive entry point for risk-tolerant investors with a long-term investment horizon.
  • In Search Of Income: Preferred CEFs (Part II)
    Dec. 14, 2014 DFP, FPF, HPF 14 Comments

    Summary

    • Closed-end funds should be evaluated along multiple dimensions, including distribution yield, NAV performance, valuation, and risk factors.
    • Depending on individual investor priorities, a variety of preferred CEFs may be particularly attractive to investors.
    • Two funds, JH Premium Dividend Fund and Nuveen Preferred & Income Term, score highly along all dimensions and are particularly appealing investment candidates.
  • In Search Of Income: Preferred CEFs (Part I)
    Dec. 13, 2014 DFP, FPF, HPF 19 Comments

    Summary

    • Preferred closed-end funds offer several advantages over direct investments in preferred stocks as well as over other income-producing fund types.
    • Closed-end funds are best evaluated along multiple dimensions, including distribution yield, NAV performance, valuation, and risk.
    • The preferred CEF sector currently offers a very attractive source of income for investors willing to accept some level of market beta.
  • Ready For The Holiday Shopping Season - In Closed-End Funds?
    Nov. 13, 2014 15 Comments

    Summary

    • Tax-loss selling appears to be a major force in the closed-end fund marketplace.
    • However, selling pressure has historically been strongest in early-to-mid November.
    • Long-side investors should begin readying their shopping lists of fund bargains that have been excessively battered in the tax-loss season sell-off.
  • Look Out Below! PIMCO Closed End Funds Suffer From Bill Gross Departure
    Sep. 27, 2014 JNS, PCI, PCK 17 Comments

    Summary

    • Nearly all of PIMCO's 19 closed end bond funds took a beating today in the wake of Bill Gross' departure.
    • Despite today's sell-off, these CEFs remain at lofty premium pricing levels, far out of line with peer funds.
    • PIMCO CEF longs should strongly consider their reasons for holding any PIMCO funds.
  • 7 MLP Closed End Funds On Clearance Sale
    Sep. 24, 2014 CBA, CEM, CTR 30 Comments

    Summary

    • Closed end funds focusing on the MLP sub-sector are currently trading at extreme discounts to net asset value and represent a very attractive buying opportunity.
    • The recent declines in price have coincided with announcement of the Kinder Morgan reorganization, which has been generally seen as a positive factor for the MLP sector.
    • Particularly attractive opportunities exist within seven MLP closed end funds.
  • Short TVIX: The Ultimate VIX Contango Trade
    Editors' Pick • Jun. 19, 2012 TVIX 58 Comments
  • 10 High-Dividend ETFs
    Jan. 18, 2012 NLR, PBP, PCEF 1 Comment
  • Weekly Volatility Outlook: Seeking Profits From The Short Side
    Jan. 15, 2012 TVIX, VXX, VIIX 1 Comment
  • Stay Short Volatility ETFs Amid Steepening Contango
    Jan. 9, 2012 VXX, VXZ, XIV 6 Comments
  • Shorting VXX: New Year, Old Trade
    Jan. 5, 2012 VXX 24 Comments
  • ETF Momentum Shifting Into Global Equities, Bear Funds
    Sep. 27, 2011 EFA, IWF, SHV 1 Comment
  • 3 Commodity ETFs Priced Against Each Other
    Sep. 26, 2011 SLV, GLD, GDXJ 1 Comment
  • Skidding Down The Wall Of Worry: VIX Futures Move To Backwardation
    Sep. 21, 2011 VXX, VIXY, VIIX Comment!
  • Foreign Currency Investors Rush For The Exits: ETF Fund Flows For The Week Ending 9/16
    Sep. 20, 2011 FLAT, UCO, SPXL 3 Comments
  • Top ETF Fund Flows For The Past Week
    Sep. 14, 2011 SHY, VWO, IYR Comment!
  • 10 ETFs in Hyper-Growth
    Jun. 20, 2011 SPLV, IWL, UST 2 Comments
  • 10 Disappearing ETFs
    Jun. 20, 2011 CU, PMR, JJT Comment!
  • Risk On: Funds Flow Into Speculative ETFs
    Jun. 19, 2011 VXX, SDS, TBT 6 Comments
  • 30 Days Later: The VXX Short
    Jun. 7, 2011 VXX 15 Comments
  • iPath S&P 500 VIX Short-Term Futures ETN: Swimming Against the Currents
    May. 5, 2011 VXX 24 Comments
  • Stock Picking Can Be Child's Play
    Jan. 6, 2011 PG, XOM, DIS 13 Comments
  • Will QE2 Make a Triple Play?
    Nov. 16, 2010 GLD, SLV, XHB 11 Comments
  • Winners (and a Few Losers) from RIM's Recent Quarter
    Apr. 5, 2009 BBRY, MRVL, QCOM 2 Comments
  • The Hidden Cost in Inverse ETFs
    Jan. 26, 2009 SKF, DUG, SZK 6 Comments
  • Housing Price Corrections in the Bay Area
    Dec. 7, 2008 15 Comments
  • Synaptics Has the Right Touch
    Oct. 24, 2008 SYNA Comment!