CEF Weekly Review: Why Rising Leverage Costs Are Not To Blame For Low Returns

Sep. 23, 2022 7:39 PM ET, , , , , , , 20 Comments

Summary

  • We review CEF market valuation and performance through the third week of September and highlight recent market action.
  • CEFs had a tough week due to an upside surprise in inflation which pushed nearly all assets lower.
  • We discuss why rising CEF leverage costs cannot explain the bulk of the year's total return across the CEF space.
  • We highlight some commentary on the RiverNorth OPP CEF as well as the Apollo CEFs.
  • Looking for a helping hand in the market? Members of Systematic Income get exclusive ideas and guidance to navigate any climate. Learn More »

Business And Finance Concept Of A Bull Market Trend High Quality

Darren415

This article was first released to Systematic Income subscribers and free trials on Sep. 18.

Welcome to another installment of our CEF Market Weekly Review where we discuss closed-end fund ("CEF") market activity from both the bottom-up - highlighting individual fund news

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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 AIF, DMO, WDI, PTA, FINS 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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