CEF Weekly Review: Rates Are Up, Why Are My Loan CEFs Down

Apr. 09, 2022 7:04 AM ET, , , , , , , , , , , , , 5 Comments

Summary

  • We review CEF market valuation and performance through the last week of March and highlight recent market action.
  • CEFs rallied strongly to close out a pretty poor quarter for returns.
  • We discuss some of the misconceptions surrounding interest rates and the performance of loan CEFs.
  • We highlight some news from John Hancock funds and comment on VCIF and RNP.
  • We continue to find value in a barbell allocation of higher-quality longer-duration sectors as well as floating-rate credit sectors.
  • 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 »

Digitally enhanced shot of a graph showing the ups and downs shares on the stock market

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This article was first released to Systematic Income subscribers and free trials on Apr. 2

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 NZF, AIF, NAD 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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