Current market fluctuations have created significant discounts on closed-end funds (CEFs), with yields ranging from 6.3% to 12.9%. Amid this environment, investors can purchase these assets for as little as 88 cents on the dollar.
Notable funds include General American Investors (GAM), boasting a distribution rate of 10.8%, though it currently trades at a 12% discount to its net asset value (NAV). Similarly, Liberty All-Star Equity Fund (USA) offers a distribution rate of 12.9% while trading at a 10% discount to NAV. The Calamos Strategic Total Return Fund (CSQ), which includes a mix of stocks and bonds, features an 8.4% distribution rate with a notable 10% discount to NAV. Lastly, the BlackRock MuniHoldings (MHD) provides a 6.3% yield with a discount nearing 11% to NAV.
Investors looking for high yields in a volatile market have options in CEFs that offer robust distributions, despite the uniqueness of each fund’s investment strategy and risk profile.
