Volatility breeds opportunity: Closed-end fund income ideas at a discount
2018 can be summed up in one word-volatility. To some, that word may have negative connotations. At BlackRock, we embrace volatility and look for opportunity. In our view, leveraged credit focused closed-end funds ("CEFs") may present a opportunity for income investors seeking attractive yields. Recent economic data confirms that the global growth is slowing, inflation remains moderate, and financial conditions have tightened. As a result, the Federal Reserve may be nearing its neutral policy rate. This Fed "pause" should benefit leveraged credit focused CEFs that have been adversely impacted by higher borrowing costs in addition to the confluence of geopolitical tensions, growth fears and overall negative market sentiment for risk assets.
Patience can pay with a long-term income strategy
High income opportunities at a discountnet asset value
Not all discounts are equal-use z-scores to identify potential value trapsZ-score