CEF Analysis | High Yield Sector Update

Summary

• The HY CEF sector has done well though not as well as other sectors in terms of discount returns in the last month (+1.3%).

• The sector as a whole is near its long-term fair value with a discount of -5%.  But with spreads near the pre-Covid tightest levels, there isn't much upside for NAVs.

• When there is not much upside for NAVs and discounts are re…