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Closed End

Assume we were to get a recession bottom. What is your preferred closed end high yield bond fund?

Comments

  • edited August 7
    Right now I am using ARDC, PAXS and WDI. They may not be right for you.

    Since you changed the question I use PHK.
  • edited August 7

    Assume we were to get a recession bottom. What is your preferred closed end bond fund?

    The question seems unclear. Bonds (very high quality) are great to own at the beginning of a recession. At the bottom of a recession you’d probably want to move everything into junk bonds which would benefit from the recovery. Perhaps even better, move into equities.

    I have one bond CEF - WEA. This one favors BBB corporates. That’s 1 bump above junk bond status. In a recession some of those would very likely be downgraded to junk.
    -

    One more bond CEF (I know nothing about) is BKT from Blackrock. Came across it weeks ago in some reading. M* is missing data on duration. I believe it hues to the shorter end of the curve. 29% levered. Mostly higher quality bonds. Probably some government paper. Do your own research.

  • edited August 7
    Hank, I have edited my original post. High Yield provides deeper discounts, lower price and higher yield if one if willing to assume the risk at some point in the business cycle.
  • edited August 7
    :)
    I see. That’s really ”advance planning” as we’re just beginning to slide into recession. But - good to have a list of things to buy at the other end - if you’re still interested in investing by then.

    PS - I don’t know of any high yield / junk CEFs. But @junkster no doubt does.
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