CEF Weekly Review: Rising Leverage Costs Remain A Headwind For Some Funds

Oct. 07, 2022 7:47 PM ET, , , , , , , , , 9 Comments

Summary

  • We review CEF market valuation and performance through the last week of September and highlight recent market action.
  • September was the worst month for CEFs since March of 2020, with a double-digit drop for the broader CEF space.
  • We discuss the income dynamics of the Flaherty preferred suite, which continues to see a decrease in its income-generating capacity.
  • We also highlight the distribution hike from VVR.
  • 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 »

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 Oct. 1.

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 PTA, DMO, 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.

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VVR--
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FFC--
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FLC--
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DFP--
Flaherty & Crumrine Dynamic Preferred and Income Fund
PFD--
Flaherty & Crumrine Preferred Income Fund

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