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  • In Search Of Income: High-Yield Bond CEFs (Part I) [View article]
    @Banker, thanks for the kind words. I've always enjoyed your contributed articles as well. Kudos for exceptional timing on your exit from HY funds.

    I am not intending to call an exact bottom with this posting, just identifying good risk/reward. Though from today's market movements and Yellen's commentary it's entirely possible that HYB funds find a base here.

    I also totally agree on munis as an attractive option for taxable accounts, depending on your individual taxation situation. I'm planning to cover those in an upcoming article. They've been miles more stable as of late (though that hasn't always been the case - last year was pretty gut wrenching in the muni CEF sector)
    Dec 17, 2014. 02:54 PM | 1 Like Like |Link to Comment
  • In Search Of Income: High-Yield Bond CEFs (Part I) [View article]
    @Guardian is correct. I generally follow the CEFConnect classification system with a very few exceptions. BLW is investable, just not in this category
    Dec 17, 2014. 02:47 PM | Likes Like |Link to Comment
  • In Search Of Income: High-Yield Bond CEFs (Part I) [View article]
    @Guardian, kudos for the good results from PHT. It has been a strong performer in the past. I must say however, that fund and a few other PIMCO funds that trade at massive premiums, have always confounded me.

    What's your reasoning for being comfortable paying up for that fund? Is it your feeling about management quality? Yield? Something else? Clearly you're not alone in your enthusiasm for the fund and I'd be curious to understand the reasoning.
    Dec 17, 2014. 02:46 PM | Likes Like |Link to Comment
  • In Search Of Income: High-Yield Bond CEFs (Part I) [View article]
    PIMCO's taxable bond funds are primarily classified as either Multisector (PCI,PDI,PFL,PFN,PGP,P... or Investment Grade (PCN,PTY). None fall into the "high yield" category
    Dec 17, 2014. 02:11 AM | 2 Likes Like |Link to Comment
  • In Search Of Income: Preferred CEFs (Part II) [View article]
    None of these 13 funds are unlevered, and if that is a negative then you probably should choose a different investment vehicle.

    However, I think the leverage is a major benefit of CEFs, especially fixed income CEFs. These funds are levered 25-35% which means 25-35% more income generated for your investment. Because they're institutional, they are able to borrow (through issuing preferreds, short term notes, or other borrowings) at a cost of capital sub 2%. Pretty good in my book.

    Of course you could always just invest less in a CEF (like $80 instead of $100) and put the other $20 in a CD that pays a couple percent and you'd end up reaching the same result.
    Dec 15, 2014. 01:43 PM | 1 Like Like |Link to Comment
  • In Search Of Income: Preferred CEFs (Part I) [View article]
    Thanks for the tip - I hadn't seen that website before but looks to have some useful data
    Dec 14, 2014. 12:45 PM | Likes Like |Link to Comment
  • In Search Of Income: Preferred CEFs (Part I) [View article]
    Hi Jerbear, yes the next installment will include a couple of specific recommendations as well as a ranking of all funds in the sector (at least the 13 within consideration). Thanks for reading
    Dec 14, 2014. 12:43 PM | Likes Like |Link to Comment
  • In Search Of Income: Preferred CEFs (Part I) [View article]
    See below reply on the omitted F&C funds.
    Dec 13, 2014. 01:47 PM | 1 Like Like |Link to Comment
  • In Search Of Income: Preferred CEFs (Part I) [View article]
    I assume you're referring to FFC, FLC, PFD, PFO? Our investable universe is limited to about 475 of the 600+ closed end funds based on several screening criteria. Certainly there can be some high quality funds that fall outside of this universe, so no implication that those are sub-par.

    The last three of that group were not considered because their net assets are relatively small, which makes them difficult to trade quickly in size. That's obviously very dependent on each investor's situation.

    The first (FFC) is sizeable, but lacks the level of data transparency that we'd prefer from the fund sponsor (NAVs only calculated once per week).

    Hope that helps
    Dec 13, 2014. 01:45 PM | Likes Like |Link to Comment
  • Ready For The Holiday Shopping Season - In Closed-End Funds? [View article]
    I'm not familiar with BIT, but PCI is, in my opinion, a solid investment option. More than adequate earnings coverage for the dividend, relatively short average duration (4.2 yrs) means that your interest rate risk is much lower than many bond CEFs, and the current market price is fair or better
    Nov 13, 2014. 11:45 PM | 2 Likes Like |Link to Comment
  • Ready For The Holiday Shopping Season - In Closed-End Funds? [View article]
    "I have no tax losses to harvest" - first class problem!

    I am putting together a list of potential tax loss losers, but you're correct that the funds that fit the criteria are few and far between. Only 10 funds had capital losses of greater than 10% thru Oct 31, which compares to more than 200 during the same period of 2013.

    Nov 13, 2014. 08:06 PM | Likes Like |Link to Comment
  • Ready For The Holiday Shopping Season - In Closed-End Funds? [View article]
    Possibly, but I've excluded CEF and other physical metals companies from my search universe because of the taxation issues (PFIC and IRS Form 8621). Be warned...

    http://bit.ly/1GTAUbv
    http://1.usa.gov/1GTAUbD
    Nov 13, 2014. 03:59 PM | 1 Like Like |Link to Comment
  • Ready For The Holiday Shopping Season - In Closed-End Funds? [View article]
    @Hardog, I agree that, except in extreme cases, it's not worth selling to protect from tax-loss sellers. The greater point is that the final 6 weeks of the year (and the first several weeks of the new year) tends to be a favorable time to be long closed-end funds
    Nov 13, 2014. 12:48 PM | Likes Like |Link to Comment
  • Look Out Below! PIMCO Closed End Funds Suffer From Bill Gross Departure [View article]
    And I do believe that the PIMCO brand (which is linked to the Bond King brand) has a lot to do with that premium. I would be concerned that the brand is tarnished and the premium may soon be vanished.

    In the end investors will decide for themselves.
    Sep 28, 2014. 01:32 PM | Likes Like |Link to Comment
  • Look Out Below! PIMCO Closed End Funds Suffer From Bill Gross Departure [View article]
    A quick screen shows that EDF EDI FAM EHI FHY are all taxable bond funds with distribution yields (on a price basis not nav basis) higher than any PIMCO fund other than PHK and all are trading at discounts currently. I am not recommending those funds per se (haven't done due diligence on them), but they make the point that many funds offer investors good distributions without the PIMCO premium...
    Sep 28, 2014. 01:31 PM | Likes Like |Link to Comment
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