{"id":639,"date":"2017-01-11T18:22:36","date_gmt":"2017-01-11T18:22:36","guid":{"rendered":"http:\/\/henristeenkamp.com\/?p=639"},"modified":"2019-05-06T19:34:33","modified_gmt":"2019-05-06T19:34:33","slug":"four-closed-end-funds-to-feel-good-about-even-if-rates-rise","status":"publish","type":"post","link":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/four-closed-end-funds-to-feel-good-about-even-if-rates-rise\/","title":{"rendered":"Four Closed-End Funds to Feel Good About Even if Rates Rise"},"content":{"rendered":"

Don’t let fears of a Federal Reserve rate hike scare you away from these four promising closed-end funds<\/strong><\/p><\/blockquote>\n

The Street’s Gregg Greenberg spoke with special guest and nationally recognized closed-end fund expert John Cole Scott about four closed-end funds that are poised to do well even if rates rise. See John discuss the MFS High Income Municipal Trust (CXE<\/a>), the Calamos Global Dynamic Income Fund (CHW<\/a>), The Cushing MLP Total Return Fund (SRV<\/a>) and the Saratoga Investment Corp. (SAR<\/a>).<\/em><\/p>\n

Watch full video on\u00a0TheStreet.<\/a>\u00a0\u00a0<\/strong><\/p>\n

\n

Will highly leveraged closed-end funds (CEF) be slammed by a December interest rate hike?<\/p>\n

“A rate hike will likely impact highly leveraged closed-end funds in the short run, however the lower for longer environment will make them attractive over the long term,” said said John Cole Scott, chief investment officers at Closed-End Fund Advisors.<\/p>\n

\u00a0One of Scott’s current favorite closed-end funds is the MFS High Income Municipal Trust (CXE<\/a>) . The muni CEF trades at a 4% discount to its net asset value and currently sports a yield of 5.5%. The three year average discount for the CXE is 8.7%. Leverage in the fund is 36% and it has a duration of 7.2, which is low for funds in this category.<\/div>\n

“The CXE is a good equity hedge in an uncertain market environment and the tax-equivalent yield of around 9% is hard to beat,” said Scott.<\/p>\n

Scott is also recommending the Calamos Global Dynamic Income Fund (CHW<\/a>) , a hybrid CEF that mixes global stocks and bonds. It currently trades at an 11% discount, close to its three year average, and has a leverage of 30%. Yield on the CHW is 11.4% at last check.<\/p>\n

“Calamos has experienced active managers so investors can feel comfortable that they are in good hands,” said Scott.<\/p>\n

The Cushing MLP Total Return Fund (SRV<\/a>) pays an 8.4% yield and sports a 31% leverage ratio. The pipeline CEF trades at a discount of 13%, well below its three year average premium of 1%. Scott said the energy play is comprised of 71% midstream outfits so it is “less tied to the price of oil” than many other funds.<\/p>\n

Finally, Scott is a fan of the Saratoga Investment Corp. (SAR<\/a>) , a debt-based business development corporation trading at a 19% discount compared to its three year average of 28%. Saratoga yields a healthy 9.7% in a low-yield environment.<\/p>\n

“Saratoga trades at a discount because it is small, not because it is poorly run,” said Scott.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Don’t let fears of a Federal Reserve rate hike scare you away from these four promising closed-end funds The Street’s Gregg Greenberg spoke with special guest and nationally recognized closed-end fund expert John Cole Scott about four closed-end funds that are poised to do well even if rates rise. See John discuss the MFS High […]<\/p>\n","protected":false},"author":1176,"featured_media":640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[2,3,9],"tags":[14,20,32,43,67,72,78,110,113],"class_list":["post-639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bdcs","category-blog","category-saratoga-posts","tag-alternative-investment","tag-bdc","tag-business-development-companies","tag-closed-end-funds","tag-funds","tag-interest-rates-the-street","tag-investments","tag-saratoga","tag-saratoga-investment-corp"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts\/639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/users\/1176"}],"replies":[{"embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/comments?post=639"}],"version-history":[{"count":0,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts\/639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/media?parent=639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/categories?post=639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/tags?post=639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}