Hey guys, finally back to adding CEFs to my account.
Here is my new purchase today:
HIF - Western Asset High Income Fund
Price: $9.58
Discount: -11.05%
Yield: 7.58%
Here is the fund's strategy snapshot (sorry to copy but lazy to type lol):
The Fund is seeking to maintain a high level of current income by investing primarily in a diversified portfolio of high yield U.S. corporate debt securities and high yield foreign sovereign debt securities. The Funds seeks Capital appreciation as a secondary investment objective. The Fund will invest at least 80% of its total assets in high yield U.S. corporate debt securities. The Fund will invest in securities rated BB or the equivalent.
Here are the fund's Top Ten:
Why I like this fund:
1. Nice broad exposure to US and Foreign debit markets with good diversity and risk is spread out. Largest holding is only 2.13% which is GMAC notes. We all know GMAC is the only healthy part of GM and GM's credit rating brings up the yield on those notes even though they have a lower risk profile. I like the top 10 with the exception of Ford but under 2% I can live with it. Not happy the 3rd largest are long-term treasuries but I like the emerging market of Russia and Brazil and Mexico. All in all wide range of assets in top ten but top ten is only about 10%. Big but not enormous. So I like the fund to add some international exposure and different US debt securities.
2. Dividend amount was increased from .056 to .06 in September and has stayed there the last few months. Always nice to see increasing dividend.
3. Discount starting to narrow from lows of 14% or so around April 2006. Looking at improving conditions in the fund which may have been confirmed by dividend increase.
4. NAV is at 52-week high. I am hoping that the increasing NAV trend continues. The NAV had been in a tight range of $0.35 all year so not a very volatile fund which is good since I want consistent income without worries of sharp share price drops.
5. Average duration of fund is 4.22. Not long, and not too short. Not sure what is going to happen with rates but if the FED cuts here and there next year it will help out and if not, the fund shoudl not suffer noticeably.
6. I am still looking it up but so far I do not see any leverage. So if rates keep rising I do not have to worry about leverage through floating preferreds eating into returns.
So I am adding it to the portfolio and it should add good income and capital returns over the next year.
I am long at $9.59.
Here is my new purchase today:
HIF - Western Asset High Income Fund
Price: $9.58
Discount: -11.05%
Yield: 7.58%
Here is the fund's strategy snapshot (sorry to copy but lazy to type lol):
The Fund is seeking to maintain a high level of current income by investing primarily in a diversified portfolio of high yield U.S. corporate debt securities and high yield foreign sovereign debt securities. The Funds seeks Capital appreciation as a secondary investment objective. The Fund will invest at least 80% of its total assets in high yield U.S. corporate debt securities. The Fund will invest in securities rated BB or the equivalent.
Here are the fund's Top Ten:
Why I like this fund:
1. Nice broad exposure to US and Foreign debit markets with good diversity and risk is spread out. Largest holding is only 2.13% which is GMAC notes. We all know GMAC is the only healthy part of GM and GM's credit rating brings up the yield on those notes even though they have a lower risk profile. I like the top 10 with the exception of Ford but under 2% I can live with it. Not happy the 3rd largest are long-term treasuries but I like the emerging market of Russia and Brazil and Mexico. All in all wide range of assets in top ten but top ten is only about 10%. Big but not enormous. So I like the fund to add some international exposure and different US debt securities.
2. Dividend amount was increased from .056 to .06 in September and has stayed there the last few months. Always nice to see increasing dividend.
3. Discount starting to narrow from lows of 14% or so around April 2006. Looking at improving conditions in the fund which may have been confirmed by dividend increase.
4. NAV is at 52-week high. I am hoping that the increasing NAV trend continues. The NAV had been in a tight range of $0.35 all year so not a very volatile fund which is good since I want consistent income without worries of sharp share price drops.
5. Average duration of fund is 4.22. Not long, and not too short. Not sure what is going to happen with rates but if the FED cuts here and there next year it will help out and if not, the fund shoudl not suffer noticeably.
6. I am still looking it up but so far I do not see any leverage. So if rates keep rising I do not have to worry about leverage through floating preferreds eating into returns.
So I am adding it to the portfolio and it should add good income and capital returns over the next year.
I am long at $9.59.