Indexor

3 CEFs for Emerging Market Debt Exposure

In the past, before we had ETFs such as BWX and PCY, I also used TEI, and to a much lesser extent GHI. Unless you are placing a couple hundred shares in your own account, BE CAREFUL using ANY CEFs. There is VERY little liquidity in these issues. Take a look at a chart of TEI for July and August of 2007. Trying to get out of this issue was totally impossible at that time. And with TEI over $15, if the dollar begins to strengthen, good luck with your exit strategy. Please do yourself and your clients a favor and look at PCY and other similar ETFs. CEFs should no longer be part of any advisor's strategy. Leave them to the pump and dump stockbrokers.