Weekly Commentary | May 25, 2025 | DMF Liquidation, CEFs As A Category- A Perspective
Summary
CEFs often over-distribute due to industry incentives, leading to long-term NAV declines and negative performance.
High yields attract investors and tighten discounts, but also draw activist investors seeking to unlock value through corporate actions.
Fund managers are reluctant to cut distributions, often delaying reductions even when under-earnin…
