HIGHL.INC.FD SHSBI DL-001

The Income-Covered CEF Report screens funds with >100% distribution coverage, reducing the risk of distribution cuts and potential price declines. Key metrics: premium/discount, z-score, leverage, baseline expense, and coverage. Focus on funds with wide discounts, negative z-scores, and high yields. Explore top lists for further research; these shortlists are not final buy/sell recommendations. Always verify coverage ratios with official fund documents.» Mehr auf seekingalpha.com

We take a look at the action in preferreds and baby bonds through the second week of March and highlight some of the key themes we are watching. Preferred stocks saw a slight gain over the week, driven by stable spreads and a Treasury rally, though most sectors are still down for the month. Highland Opportunities and Income Fund's new preferred HFRO.PR.B has similar economics to HFRO.PR.A but lower asset coverage, raising concerns about future preferred issuances.» Mehr auf seekingalpha.com

Highland Opportunities and Income Fund's tender offer was a bit harsh on the common and the preferreds. Moody's downgraded HFRO's preferred shares due to high illiquid asset exposure and deteriorating fixed-charge coverage, with another downgrade likely imminent. We assess the merits of the common and preferred shares post the new issuance.» Mehr auf seekingalpha.com