CEF Weekly Market Review: Beware Of The Free CEF Lunch

Oct. 30, 2021 3:52 PM ET, , , , , , 5 Comments

Summary

  • We review CEF market valuation and performance over the third full week of October and highlight recent market events.
  • Equity-linked CEF sectors have been supported by strength in equities while higher-quality fixed-income sectors continue to face the headwind of higher Treasury yields.
  • We discuss the apparent "free lunch" in the CEF space of high-quality CEFs with high distribution rates.
  • And touch on recent leverage changes as well as news from FMY, HYI, EDF and others.
  • I do much more than just articles at Systematic Income: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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This article was first released to Systematic Income subscribers and free trials on Oct. 25.

Welcome to another installment of our CEF Market Weekly Review where we discuss CEF market activity from both the bottom-up - highlighting

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This article was written by

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ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.

ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of EIC either through stock ownership, options, or other derivatives. 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.

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