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Any thought on bank loan (floating rate funds)

ron
edited May 2013 in Fund Discussions
I've owned Nuveen JRO for several years and while it's trading at a premium of 8% and pays a 7% distribution, I'm still hanging on, but nervous. As I check other funds, many are at premiums in the closed end fund sector and also use leverage, which cheap these days. I see JQC cut its distribution but still pays 7%.. Anyone have ideas here?

Comments

  • also owned JRO, VVR and JQC in the past. JQC, with a relatively modest premium after the divvy cut, looks like a re-entry candidate. i am however relying on multi-strat income funds to allocate for me to floaters... those like BGH and /or PDI. floaters are very expensive due to record flows. Also, be careful, JRO is under-earning its distribution, so it can too cut its payout and suffer a price adjustement as a result.
  • I always hesitate going into such new funds like BGH or PDI, but since I do own multisector funds PIMIX, FSICX, OSTIX which are not pure bank loan funds, perhaps I should wait or take a JQC position and sell JRO.
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