urn2bfree
Full time employment: Posting here.
- Joined
- Feb 14, 2011
- Messages
- 853
...CEF...use leverage and also buy illiquid investments. Most CEFs are invested in fixed income.
Can you replicate this on your own? Not really.
... To each his own, more than one road to Rome, and all that.
But what this means is the road is riskier...it generates yield like fixed income but if interest rates rise, good bye yield. And drop in NAV too. So it trades like a stock and carries the interest rate risk of a bond. I don't know why my mother should be in this when there are less riky alternatives.