High Current Yield With Solid Credit Rating: A Closer Look At NCZ And Its Preferred Stock NCZ.PR.A
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Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(5min)CommentsSummaryThe Virtus Convertible & Income Fund II and its preferred stock offer high yields with strong credit quality, supported by an 'A' Fitch rating.NCZ's portfolio is diversified across 221 holdings, with 62% in convertible securities and significant sector allocations to IT, Industrials, and Financials.NCZ.PR.A trades below par, is callable anytime, and currently yields over 6.6%, though its distributions are not qualified.Despite higher leverage and expenses, NCZ benefits from 1940 Act regulation, robust asset coverage, and consistent outperformance versus peers.This idea was discussed in more depth with members of my private investing community, Trade With Beta. Learn More » We Are/DigitalVision via Getty Images We continue our search for financial instruments with minimal credit risk. Today, we will look at Virtus Convertible & Income Fund II (NCZ) and its preferred stock (NCZ.PR.A) NCZ basic information Total Net Assets: Close This article was written byArbitrage Trader15.5K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.