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Stock impact report

BGH: More Downside Risks As Long As Interest Rates Are High [Seeking Alpha]

Barings Global Short Duration High Yield Fund Common Shares of Beneficial Interests (BGH) 
Company Research Source: Seeking Alpha
BGH trades at a 7.54% discount to NAV, reflecting market concerns over sustainability of its 12.5% yield and deteriorating net investment income. The fund relies heavily on below-investment-grade debt, and aggressive 31.7% leverage and cannot currently cover distributions from earnings. Limited upside exists unless interest rates fall; persistent high rates could force dividend cuts and further NAV erosion. Daniel Grizelj/DigitalVision via Getty Images Overview When I previously covered the Barings Global Short Duration High Yield Fund ( BGH ), I issued a hold rating due to the fund's high dividend yield that can offset market uncertainty, despite its inconsistent earnings. Since Show less Read more
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