CEF Weekly Review: Are We In Another CEF Deleveraging Wave?

Apr. 19, 2025 3:56 AM ETRSF, ARDC, PHK18 Comments
(6min)

Summary

  • We review the CEF market valuation and performance through the second week of April and highlight recent market action.
  • CEF sector returns were mixed, with muni sectors underperforming and equity-linked sectors finishing in the green, opposite to the previous week.
  • Despite recent volatility, CEF discounts have recovered somewhat and remain on the wider side of the recent range; the market has weathered the situation relatively well.
  • We took advantage of wider credit spreads and discounts to add ARDC and PIMCO High Income Fund to our CEF allocation due to their strong performance and attractive valuation.
  • Systematic Income members get exclusive access to our real-world portfolio. See all our investments here »

Wave breaking

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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 and events – as well as the top-down – providing an overview of the broader market. We

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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 ARDC, PHK 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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