the_Bird

Income Funds: The Audacity of Hope

Take a closer look at JGG's "yield," though; informtation from their website indicates that about half the income is a return of principal. Now, buying an asset at a 10% discount and getting it back at par value isn't a bad thing - but as long as they are paying out more income then they have for interest income, there WILL be NAV erosion.

10% discount's par for the course in CEF-land; many of these "enhanced-income" CEF's were trading at 25%+ discounts for a while a few months back. Most bounced significantly in early January (who says the January effect is dead?)