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Stock impact report

JQC: Heavy Leverage Use And Generous Payouts Limit Appeal [Seeking Alpha]

Nuveen Credit Strategies Income Fund Shares of Beneficial Interest (JQC) 
Company Research Source: Seeking Alpha
JQC relies heavily on leverage (37% of assets) and invests primarily in below-investment-grade loans, increasing risk in a high-rate environment. Distribution coverage remains inconsistent, with payouts often exceeding earnings; recent dividend increases may be aimed at narrowing JQC's discount to NAV. I maintain a sell rating on JQC, as its aggressive structure and unreliable earnings make the high yield unattractive for long-term investors. atakan/iStock via Getty Images Overview When I previously covered Nuveen Credit Strategies Income Fund ( NYSE: JQC ), I issued a Sell rating due to the questionable distribution coverage and premium valuation. Since the time of my last coverage, the macroeconomic environment This article was written by 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 Show less Read more
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