AFT / CEF Weekly Review: Should CEF Investors Pivot When The Fed Does?

Floating rate securities have strong yields, low duration, and have significantly outperformed YTD. There are several strong floating rate funds avail more_horizontal

Interest rates are likely to remain elevated due to the strong U.S. economy, despite inflation concerns. The U.S. debt has reached a record high, and more_horizontal

Senior loans offer some of the highest yields in the market today. AFT is a particularly strong senior loan CEF, with a growing 11.5% yield, and large more_horizontal

Apollo Senior Floating Rate Fund focuses on senior secured leveraged loans, with a portfolio mainly consisting of single 'B' rated collateral. The fun more_horizontal

Fidgety credit markets have knocked down prices on healthy performing senior corporate loans, as well as many other credit asset classes. Wrap those l more_horizontal

We review CEF market valuation and performance through the fourth week of March and highlight recent market action. CEFs were relatively flat on the w more_horizontal

The AFT fund primarily invests in senior secured loans. The fund pays an attractive 10.2% distribution that is fully funded by NII. more_horizontal

AFT is at an attractive and compelling deep discount. However, it lags peers, so the larger discount could be warranted if, in the future, the weaker more_horizontal