ISD: Discounted High-Yield Bond Fund, Attractive Distribution Yield

Oct. 29, 2021 3:37 AM ETPGIM High Yield Bond Fund (ISD)CHTR, HYT29 Comments

Summary

  • ISD has a high-yield focus, which generally translates into lower interest rate sensitivity.
  • The fund's current discount could present an opportunity to go back into this fund.
  • The fund has an attractive distribution yield of 7.71%, though distribution coverage was lacking.
  • Looking for a helping hand in the market? Members of CEF/ETF Income Laboratory get exclusive ideas and guidance to navigate any climate. Learn More »

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Written by Nick Ackerman, co-produced by Stanford Chemist

PGIM High Yield Bond Fund (NYSE:ISD) has been narrowing its discount throughout 2021. This isn't that unusual, as that has been the trend for most of the

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This article was written by

Nick Ackerman profile picture
11.43K Followers
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields
Nick Ackerman is an avid student of the markets and has been investing in his own accounts for over 14 years. He is a former Financial Advisor and has previously qualified for holding Series 7 and Series 66 licenses. These licenses also specifically qualified him for the role of Registered Investment Adviser (RIA), i.e., he was registered as a fiduciary and could manage assets for a fee and give advice. Since then he has continued with his passion for investing through writing for Seeking Alpha, providing his knowledge, opinions, and insights of the investing world. His specific focus is on closed-end funds as an attractive way to achieve income as well as general financial planning strategies towards achieving one’s long term financial goals.

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I provide my work regularly to CEF/ETF Income Laboratory with articles that have an exclusivity period, this is noted in such articles. CEF/ETF Income Laboratory is a Marketplace Service provided by Stanford Chemist, right here on Seeking Alpha.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ISD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article was originally published to members of the CEF/ETF Income Laboratory on October 27th, 2021.

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