ArrowMark Financial Corp

ArrowMark Financial Corp. focuses on high income through investments in Regulatory Capital Relief Securities, comprising 87% of its portfolio, primarily issued by major banks. BANX currently offers an attractive and fully covered 8.5% distribution yield and is currently trading at a discount of roughly -3.5% (based on NAV as of Dec. 31, 2024). It is probably a good bet on getting consistent and fully covered high income, as long as interest rates stay reasonably high. However, there are some risks involved, and the fund may be a bit pricey as the discount has significantly narrowed during the last six months.» Mehr auf seekingalpha.com

ArrowMark Financial Corp (BANX) has seen some strong total returns since our prior update, some of this was thanks to further discount narrowing. BANX invests in regulatory capital securities of financial institutions, offering a unique fixed-income exposure, delivering an 8.50% yield with strong distribution coverage. The fund's narrow discount does mean we remain more neutral; however, being able to deliver consistent quarterly distributions can still make it appropriate for income-seeking investors.» Mehr auf seekingalpha.com

For income investors, closed-end funds, or CEFs, remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. CEFs are generally characterized by higher volatility and deeper draw-downs than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer “excess” discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.» Mehr auf seekingalpha.com