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Post by richardsok on Mar 7, 2021 13:55:39 GMT
Summary & Highlights of most recent Merrill Lyn CEF Report
General Comments
High option premiums should support distributions in covered call CEFs.
Senior Loans: A good choice for those who accept credit risk over interest rate risk.
Multi-sector: some are at risk of under-earning their distributions
Preferreds: many CEFs face pressure from the fixed income positions in their portfolios
Take discounts where you find them.
SELECTED ACTIONABLE OPINIONS:
UPGRADES (from Neutral to Buy) BXMX IGD FFC FLC AWF
(from Underperform to Buy): BSL
UNDERPERFORM: FCT HPF
NEUTRAL: PCI PDI
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Post by richardsok on Mar 29, 2021 16:21:28 GMT
Late March 2021 CEF Commentary from Merrill Lynch (Summary & Selected Highlights)
Cov Call Buys: BXMX ETW
Preferred Buys: FFC FLC (Avoid: HPF)
Sr. Loan Buys: BSL JRO
Real Est Buys: IGR
Multi Sector Buys: AWF, BTZ
(NEUTRAL: PCI PDI PHK)
--Fixed Income becoming challenging
--Favor more credit risk with less duration
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Post by xray on Mar 29, 2021 20:56:47 GMT
FCT [mentioned in the CEF report] cut their dividend on 3/23. Now $0.0976/month [$1.1712/Yr]; previously was $0.105/month, $1.260/Yr. With that said:
Some of us are holding FCT in our current portfolio's [1.11% of total portfolio currently]. FCT is underperforming and a cut in the previous dividend was expected. We sold all of our shares [except token amount for "possibility" of re-building at a later date if/when numb3rs improve] on 3/22. The current dividend of 10.25% [COB Friday] still meets our R72 requirements for holding it [after the dividend cut]....
Currently FCT has a report card grade of 60 [failing] and a power rating of 71 [signal for possibly improving in the short term]. 13wk star rating average has dropped to 6.00 [Hold status]. NAV and intrinsic value have been dropping....
Live Long and Prosper....
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