BlackRock Investment Quality Municipal Trust: 9 Reasons To Buy This High-Quality Muni CEF

BlackRock Investment Quality Municipal Trust: 9 Reasons To Buy This High-Quality Muni CEF

Summary

  • Munis continue to have a strong 2019 thanks to lower rates, strong demand, and limited supply.

  • A large overhang in the form of expected higher rates has now been removed from the conversation regarding munis.

  • In our most recent analysis, we have shifted away from large convergence trade opportunities to distribution sustainability.

  • This is the second in a series of write-ups focused on the space.

Why We Bought RiverNorth Opportunistic Municipal Income For Our Portfolio

Why We Bought RiverNorth Opportunistic Municipal Income For Our Portfolio

Summary

  • Municipal bonds have performed well in the last several months, both during the bear market and in the recovery.

  • Muni CEFs have had one of their best quarters ever thanks to starting discounts near their widest levels of the last 20 years.

  • What's left in terms of convergence opportunities?

  • A closer look at an opportunity today in RMI.

Yield Hunting CEF Report April 2019: Distribution Cuts Finally Plague PIMCO

Yield Hunting CEF Report April 2019: Distribution Cuts Finally Plague PIMCO

Summary

  • We didn't see as many distribution cuts in April but the magnitude of the cuts were very significant.

  • The two largest sponsors - Blackrock and Nuveen - both reported no cuts to their funds.

  • PIMCO had eight of their 20 funds cut the distribution.

A Shift To A Capital Return Program Could Boost Putnam Premier Income Trust

A Shift To A Capital Return Program Could Boost Putnam Premier Income Trust

Summary

  • There are many quirks to closed-end funds that investors should look for in order to capitalize on a total return approach.

  • Many CEFs are being attacked by activists and shifting towards a managed distribution policy in order to increase shareholder demand.

  • Putnam shifted one of their flagship funds to a managed distribution policy as part of a capital return program.

  • We analyze the fund and what exactly a managed distribution policy is.

Yield Hunting CEF Report March 2019: Distribution Cuts Pick Up, But So Do Increases

Yield Hunting CEF Report March 2019: Distribution Cuts Pick Up, But So Do Increases

Summary

  • February saw CEF discounts continue to rebound and are now very close to the levels we saw prior to the fourth quarter collapse.

  • The VIX, which we believe is a big driver of CEF discounts, continues to decline.

  • March 1 distribution announcements saw 17 increases and 30 decreases.

Muni Market Update: January 2019

Muni Market Update: January 2019

Summary

  • Munis are suddenly gaining fame because of their durability during the recent downturn.

  • We think the "January effect" is well underway and that having some exposure is better than waiting for entry to the perfect fund.

  • There's a lot of potential discount capture (mean reversion on the discount) available still despite the rally.

  • If the Fed pauses, the rally in muni CEFs could extend beyond January, and we could ("could") move back toward the high valuation levels seen in the summer of 2017.

  • News reports are coming out about lower-than-expected tax refunds mostly due to the withholding not being correct. Once higher earners see this, they will undoubtedly ask their CPAs how they can reduce their taxable income.

LDI Investing Is No Longer Just For Pension Funds: What It Can Do For You

LDI Investing Is No Longer Just For Pension Funds: What It Can Do For You

Summary

  • Most individual investors are not familiar with LDI investing but it is gaining more popularity.

  • We believe that most portfolios in the future will reflect at least some aspect of LDI concepts.

  • Financial advisors are dramatically shifting towards this kind of strategy in order to provide value to clients.

Our Update And Sell Call On Barings Corporate Investors

Our Update And Sell Call On Barings Corporate Investors

Summary

  • High yield debt fell hard in the fourth quarter, which is likely to be the case when MCI reports its December 31st NAV print.

  • Prices have recovered so far in January - probably at least half of the decline of the fourth quarter.

  • It remains to be seen how investors will react:  Will it be based on the MCI print or will they look ahead at the recovery.

Why Floaters Look Attractive Despite Lowered Rate Expectations

Why Floaters Look Attractive Despite Lowered Rate Expectations

Summary

  • Leveraged loans are a bet on higher interest rates, which seemed all but a forgone conclusion early last year.

  • Today, the case for higher rates is murky to say the least as economic growth slows.

  • Even if rates do not rise, leveraged loans are a value sector of the fixed income market as fund flows have created deep bargains.

Fewer Distribution Cuts For Closed-End Funds In January

Fewer Distribution Cuts For Closed-End Funds In January
  • January had far fewer distribution cuts than what occurred in November with munis being spared.

  • Most of the significant cuts this month came from the global dividend payers which is not surprising given the weakness in the space.

  • We highlight two of those cutters which come from Lazard who adopted a 7% level distribution policy to arrest the NAV decline.

A Preferred Time To Go Yield Shopping

A Preferred Time To Go Yield Shopping
  • The market has gotten bumpier over recent months, but that is starting to shake loose some opportunities.

  • Our alternative income Marketplace panel talks about where they see good ideas and how they're bracing for the riskier climate.

  • While 2018 doesn't leave a great taste in these authors' mouths, there is a bit of excitement among them about what 2019 offers.