Articles for Financial Advisors

Closed-End Bond Funds

Closed-End Bond Funds

Closed-End  Bond  Funds

Closed-end funds (CEFs) trade on exchanges and almost always trade at a NAV discount or premium. For example, at the end of September 2012, 70% of CEFs traded at premiums; a year later, 89% traded at discounts (67% traded at discounts > 5%). One risk often not considered is the fact may CEFs are leveraged, which can magnify yields, losses, and gains. 

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American Funds

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