Pleasant weekend. Got in a rifle that I had ordered a month ago yesterday and it appears to be quite well made. I'll hold off on shooting it until I get paid as I've had a couple of surprise expenses come up.
I was cancelled from work this morning (it was only a four hour shift and a forty mile commute, so no complaints). Me and the Woman took the dogs to the dog park. Drove around town and looked at what has changed in the four years since we last lived here. Marked out a few restaurants to try. Found out the university now has a hockey team and I'm going to try to get us some tickets. It's the first year, so I doubt they'll be any good and I don't think they should charge until they build up the team, but it's a lot cheaper than going to a football game and baseball season's a ways off...
I now have five 2x leveraged etns in the taxable account, which has served the purpose of juicing the yield and aging me considerably over the last month. That was my original goal when I started rebuilding the portfolio, so now it's time to branch out.
So, for Friday's paycheck:
A quick look at preferred stocks - I am not inspired. Maybe I got spoiled about this time last year with many more having a bigger discount to par value and higher yields, but I think I'm going to hold off until we get another panic if there's an interest rate increase. Exceptions might include various mlp preferreds, but I'm not inclined to buy at the present time.
There are plenty of cefs trading at a greater than 8% discount and greater than a 8% market yield. And to weed out some of the bad ones, I'm employing what I consider to be the most important screening tool - the distribution rate on NAV of less than 10%. The idea being behind that is that it would be very difficult for any fund to consistently average out that much of a total return on its holdings over many years and different market cycles.
That still leaves me with a bunch to shuffle through. Probably twenty or more. I'm not inclined to go through all of them and you probably wouldn't want to read a description of why I would be interested or not interested in each, so I looked for various sectors I don't currently own under the cefconnect description and that might counterbalance weakness in other things I currently own. And sometimes I spot something that used to not show up in this particular screen (I run it about once a week but I only get paid every other week) and check it out out of curiosity. Some of these I'm kind of familiar with and have written about and some are new to me.
(NYSEMKT:GLO) - currently at close to a 14% discount. Distribution is a bit over 9%. A long, long time ago and in a place semi-sorta far away, an anonymous User wrote his first instablog, part of which trashed this particular cef. The NAV of the fund hasn't changed too much since then and the fund switched to monthly pay. Hopefully User has learned his lesson, since I hear he uses different metrics to examine funds and this one hasn't performed too badly.
Anywho, since this is a global fund and utilizes a variety of strategies that are difficult to keep track of, and this is a taxable account, I'm surprised to see the ROC isn't more because they list options as one of the strategies they use.
(NYSE:AIF) - 10% discount and an 8% distribution rate. Notice the NAV has been fairly flat since the fund started. And the last reported eps was greater than the distribution. Something I like in a bond fund. Has over a months' worth of built up UNII. Annnnnd - 58% of the portfolio is listed as senior loans which are supposed to do fairly well in a rising rate environment, which we will have at some point or another.
(NYSE:TSLF) - I have written about this before, several times. Currently at a 8% distribution and 8.6% discount. And I notice that I've never really provided enough information to copy/paste. Another senior loan fund, which is listed as having nothing but senior loans. EPS is also better than the distributions. And another one that has a fairly flat NAV since inception.
(NYSE:PCI) - Well. The gremlin left and Pimco is going down, right? Around about a 8.5% distribution and a 9.5% discount. EPS is well above the distribution rate. Ivacsyn is listed as one of the fund managers (but you have to wonder if his name is just listed for public relations purposes like Gross). My attraction to it has less to do with all of that mess and more to do with the market price going down and the NAV going up.
(NYSE:AGC) - I know I've written about this one before. Currently around a 12.7% discount and 8.5% yield. I like the ROC, since this is a taxable account. Maybe if I buy it this time, I won't sell it quickly and thus could benefit from the favorable tax advantage this gives. Has about 58% convertibles, though most of them are not US.
So, what, then? I kind of like them all, but my preference would be TSLF if the discount and market yield hold. We'll see what's sold off most by Friday AM.