CEF Market Review: The Double-Whammy Of 'Juicy Yield' CEFs

ADS AnalyticsInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryWe review the CEF market valuation and performance through the second week of February and highlight recent market action.CEFs overall saw higher NAVs this week, with MLPs and Utilities leading; sector discounts have tightened, rendering the market relatively expensive versus historical averages.John Hancock preferred share CEFs (HPI, HPF, HPS) maintain high distribution rates but suffer from low coverage, creating a double-whammy setup for investors.EIC stands out in the CLO equity space, delivering positive total NAV return last year and trading at a 22% discount, yet remains undifferentiated by the market.TSI announced a 31% distribution increase and a rights offering.I do much more than just articles at Systematic Income: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »Klaus Vedfelt/DigitalVision via Getty Images Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We alsoThis article was written byADS Analytics13.65K FollowersFollowADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.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. 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.