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Stock impact report

HIO: One Of The Better Junk Bond CEFs With A Double-Digit Yield [Seeking Alpha]

BNY Mellon High Yield Strategies Fund (DHF) 
Company Research Source: Seeking Alpha
The HIO fund has managed to outperform the Bloomberg junk bond index on a total return basis over the past three years, despite not using leverage. The fund primarily invests in high-yield bonds and has taken precautions to protect against defaults, but the risk lies in interest rates rather than defaults. The fund will probably decline over the next few months because economic data does not support the rate cuts baked into its price, but the lack of leverage should help. The fund can probably sustain its current distribution and is trading at a discount, albeit a smaller discount than it has averaged over the past month. Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More » The W estern Asset High Income Opportunity Fund Inc. NYSE: HIO ) is a closed-end fund, or CEF, that income-seeking investors can employ to meet their goals. The fund's 10.87% current yield stands as a testa Show less Read more
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