Mariana Bush, Head of CEF/ETF Research - Wells Fargo Advisors, shares her unique perspective on interesting areas of the CEF structure, as well as things to keep in mind when selecting and assessing CEFs.
I agree with the speaker's comments regarding higher interest rates and the short term value of the price. However, there are so many investors chasing yield that they will pounce on such a dip in price. Regarding her thoughts on "return of capital", I'm not a big proponent if the CEF is returning more than a fraction of a penny each month. I'd rather the CEF reduce the distributions if the earnings are not there to support them. Her comment about understanding what is in the portfolio of the CEF is spot on. Too many investors to not use the valuable info on sec.gov. Good speaker.
