ARDC / ARDC: This 10.8%-Yielding Credit CEF Remains A Buy

Rose's Income Garden consists of 5 high yield monthly payers from the energy, utility, and finance sectors. The top monthly payer in RIG is PennantPar more_horizontal

The high level of inflation in the US is making it difficult for Americans to maintain their standard of living. Ares Dynamic Credit Allocation Fund, more_horizontal

Investors today are desperately in need of income due to the rapidly rising cost of living. Ares Dynamic Credit Allocation Fund, Inc. invests in a por more_horizontal

We revisit the credit CEF ARDC. ARDC features an attractive income profile with significant floating-rate exposure and majority of its liabilities in more_horizontal

Ares Dynamic Credit Allocation Fund invests in a well-diversified portfolio of fixed-rate and floating-rate securities to provide investors with a hig more_horizontal

Since I last wrote about ARDC in August, the discount has widened to more than -13% while the NAV has stabilized. Based on the current monthly distrib more_horizontal

The ARDC fund provides high income by investing in high yield bonds, senior loans, and CLO securities. It pays an attractive 10.5% current yield. more_horizontal

With the backing and experience of Ares Credit, ARDC can leverage higher credit spreads in senior loans and CLOs to easily cover the 9% distribution. more_horizontal