Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
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.
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.
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.
Comments
Right now I am using ARDC, PAXS and WDI. They may not be right for you.Since you changed the question I use PHK.
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.
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.