CEF Holdings --- March 2026

[dickoncapecod]

There has been increasing discussion about how some alternative asset managers trade debt instruments among affiliated entities, which can influence the observable market pricing of those assets. In certain cases, lower-quality assets may ultimately be transferred to affiliated insurance businesses that are responsible for supporting annuity and pension liabilities. Examples often cited in this context include large alternative managers such as Blue Owl, Ares, and Blackstone.

If the insurance subsidiaries reach limits on their capacity to absorb additional risk, which I think the market is just starting to realize, assets that have been supported by group transaction pricing could begin to reprice more realistically in the market. Should that occur, premiums to NAV across the sector could compress dramatically.

FSK is frequently mentioned by investors as an example where governance and alignment between managers and shareholders have been questioned. Their managers have been substandard, but I think the rest of the sector is better run, but operating in a overvalued asset environment.

Just for reference, PIMCO paid a $3 million fine in 2021 related to issues involving the transfer of assets among affiliated funds.

Fun way to panic the poorly informed. So 5 years ago, PIMCO was cited for inadequate disclosure language regarding paired swap strategies. Further, transfers among affiliated funds are subject to strict regs, so it's easy for an SEC audit to find fault. An asset manager worth billions whose top managers make hundreds of millions FIXES controls and disclosures cited in audits. If you run a list of all citations and fines for asset managers over the past 5 years, you'll probably find that if you take vague descriptions in internet articles, you will be unable to invest in anything but Treasury bills.

 

[Old Dog Seeks New Tricks]

this arrived via schwab -- i thought it put recent movements in some perspective / sorry no CEFs were included

Morningstar | Weekly Highlights >​

Price Performance​

Symbol​

Today​

One Month​

Three Month​

One Year​

Dow​

-1.17%​

-5.43%​

-1.17%​

+11.31%​

S&P500​

-1.11%​

-2.56%​

-1.68%​

+17.72%​

Nasdaq​

-1.05%​

-2.27%​

-4.53%​

+24.57%​

 

[Old Dog Seeks New Tricks]

Hi. Candle stick charts. D

totally slapping myself -- of course / my advice to all -
don't get old

 

[Spock]

totally slapping myself -- of course / my advice to all -
don't get old

"too late to die young now" - Brother Dege

 

[DrVenture]

Big fan of Brother Dege. That is one of his best songs.

"too late to die young now" - Brother Dege

Things are getting weird. I expect a lot more selling to erupt. This war has added a few more straws to the camel.

Then there is the jobs problem. Which was mostly being ignored. A stressed consumer at their debt limit. Lots of government spending. Oil adding to inflation now. Seems like a point of inflection has been reached.

Sold some equity to bring down my risk exposure quite a bit. A +65% gain in the last 3 years. Really cannot complain that I choose to derisk after a bit of pullback. The TR is still solid. Lots and lots of dry powder to play with, when opportunities present themselves.

A concern here is that some investors may be looking for CEF NAV bumps upwards to sell more into strength.

 

[DrVenture]

FSCO....(private credit) Jeez....One example... .WAL is writing off $126M in bad loans. A major bank.

P.S. Software stocks are still, sorta, holding up today.

Yes, software are having a bit of a recovery. Probably were oversold.

 

[Cognito]

Yes, they are having a bit of a recovery. Probably were oversold.

Insiders knew this was going to happen and took action 2/19.
Why does the chart of the NAV (XFSCX) stop tracking on 2/10/26?
Why can't I find any press releases on their site?
Sad day for some, but I sold 1/2 holdings three days ago, added many more shares for less money today, thinking/hoping 15% dist. will hold.

 

[joejetski]

this arrived via schwab -- i thought it put recent movements in some perspective / sorry no CEFs were included

​ Morningstar | Weekly Highlights >​

Price Performance​

Symbol​

Today​

One Month​

Three Month​

One Year​

Dow​

​ -1.17%​

-5.43%​

-1.17%​

+11.31%​

S&P500​

​ -1.11%​

-2.56%​

-1.68%​

+17.72%​

Nasdaq​

​ -1.05%​

-2.27%​

-4.53%​

+24.57%​

Not even correction territory, and the chicken littles are clucking…

 

[dickoncapecod]

The week ended 3/6 was a rough one for most bondish income CEFs. These and others are now on weekly MACD sell signals: PFN PAXS PTY PHK GOF JFR HYG LQD MBB, and BDCs/private equity vehicles remain in their painful downtrend. Most CEFs not on sell signals have at least broken down decisively from long-term uptrends. (Reminder: SPY and QQQ remain on well-developed weekly MACD sell signals.)

Underlying low-risk fundamentals are nearly unchanged, suggesting that the major drivers of this drawdown have been widening credit spreads, fear of defaults, anticipated inflation spikes, and simple fear of lower prices/loss of capital. Fed funds futures oscillated between predicting one or two cuts during the week, ending Friday closer to two cuts. The year bill one year forward remained around 3.5% and the 5yr inflation breakeven 5yrs forward is 2.07%. While dispersion stats and import prices were up modestly, Friday brought a stunning downside miss for jobs --- expected at 50+k but coming in DOWN 92k(!).

It's not clear if ANY economic data due next week can overcome the fear and "weight" on CEF prices. Home sales and starts data will remain flat. CPI is expected up 0.3% and 0.2% core, leaving Y/Y at benign 2.4% and 2.5% respectively. We'll be reminded that Q4 GDP was only 1.4%, but recent PCE delators are expected at +0.3% and core 0.4% ---- with Y/Y at Fed-unacceptable 2.9% and 3%.

SO....what's going on? IMO the inflation-inducing military action in the mid-East and frequently confused/incoherent policy statements from various administration folks WERE a primary drivers of the recent downtrend, but we've entered the phase where prices have/are accelerating downward BECAUSE they are going down ---- triggering more investor pain thresholds with each down-tick. More and more attractive yields will not stop the downtrend and permit the formation of a bottom --- only an exhaustion of fearful selling can do that. We need to be "sold out" before the pain can stop, and it's impossible to predict or even speculate when a bottoming process might begin ---- Monday or weeks from now.

Finally, it APPEARS that we may be entering a period of "stagflation," where increasing inflation and slowing growth make formation of rational monetary and fiscal policies extremely difficult. And that possibility is certainly worthy of concern. FWIW, I bought a few bondish CEFs on Friday, bringing cash down to 52%. I did that in the belief that available YIELDS will serve my purposes in essentially any likely rate outcome---- but I remain at half-cash because there is no telling what extremes PRICES / YIELDS may reach before a bottom forms, and I want to be able to exploit extremes if and when they come.
Regards, Dick

 

[stefansm]

I see a lot of investors panic, but:
YTD, the only asset class down (slightly) is stocks, with S&P (red in the perf chart below) about -1.4%.
PDI (blue) is up 1.8%.
My portfolio, of ~ 75% CEFs and 25% managed futures hedge is up 2.8%.
And the managed futures hedge index I use (DBMF - yellow) is up ~9.5%. (DBMF, which replicates the positioning of the 20 top CTAs is currently long oil, short S&P, short Yen, long US treasury bonds).

 

[dickoncapecod]

I see a lot of investors panic, but:
YTD, the only asset class down (slightly) is stocks, with S&P (red in the perf chart below) about -1.4%.
PDI (blue) is up 1.8%.
My portfolio, of ~ 75% CEFs and 25% managed futures hedge is up 2.8%.
And the managed futures hedge index I use (DBMF - yellow) is up ~9.5%. (DBMF, which replicates the positioning of the 20 top CTAs is currently long oil, short S&P, short Yen, long US treasury bonds).

View attachment 62190

Hi. My portfolio is still up 2.52% YTD. But the experience of many investors who made different asset / BDC-ish / private credit selections has been very different, and their potential exits from both "good or bad" positions could be the major drivers of both CEF and equity positions next week. It will be interesting to see if your managed futures hedge continues to protect.
Regards, Dick

 

[YellowSubmarine]

I have 19 positions in CEFs. These present me with a 8.55% annual yield per FIDO. My five largest per dollar:
NMCO, ETV, NEA, NZF, UTG

 

[Randy145]

I have 19 positions in CEFs. These present me with a 8.55% annual yield per FIDO. My five largest per dollar:
NMCO, ETV, NEA, NZF, UTG
View attachment 62199

That's a good display. If it's from Fidelity, can you tell me how to navigate to that? Thanks.

 

[YellowSubmarine]

That's a good display. If it's from Fidelity, can you tell me how to navigate to that? Thanks.

Sure...Create a watch list of your holding whether you elect all holdings, CEF holdings, ETF/MFs, Outside broker holdings, etc. (I have six watch list). In the watch list you can select dividends tab (among other tabs).
BTW... Watch list tab resides under the News and Research tab

 

[stefansm]

Hi. My portfolio is still up 2.52% YTD. But the experience of many investors who made different asset / BDC-ish / private credit selections has been very different, and their potential exits from both "good or bad" positions could be the major drivers of both CEF and equity positions next week. It will be interesting to see if your managed futures hedge continues to protect.
Regards, Dick

I use the term "hedge" because managed futures are uncorrelated with the stock market and, historically, when the stock market went through bear markets, managed futures went up, hedging the market. This because all risk markets correlate with the stock market in a bear market and the CTAs are shorting all these assets in downtrend. And in a bull market, they go long the risk assets and capture the market uptrend. So, it is not a traditional hedge I have to put on and take off by timing the market, but an uncorrelated asset which exhibits this convex behavior, going up in bad times and also going up in good times, but in an uncorrelated manner, which helps hedge in bear markets and adds gains in bull markets, reducing the total portfolio volatility.
Here is a 2013 AQR study chart:

 

[dickoncapecod]

I use the term "hedge" because managed futures are uncorrelated with the stock market and, historically, when the stock market went through bear markets, managed futures went up, hedging the market. This because all risk markets correlate with the stock market in a bear market and the CTAs are shorting all these assets in downtrend. And in a bull market, they go long the risk assets and capture the market uptrend. So, it is not a traditional hedge I have to put on and take off by timing the market, but an uncorrelated asset which exhibits this convex behavior, going up in bad times and also going up in good times, but in an uncorrelated manner, which helps hedge in bear markets and adds gains in bull markets, reducing the total portfolio volatility.
Here is a 2013 AQR study chart:

View attachment 62209

Actually, I was a licensed CTA and CPO so long ago that dinosaurs ruled the Earth!
Regards, Dick

 

[Old Dog Seeks New Tricks]

Actually, I was a licensed CTA and CPO so long ago that dinosaurs ruled the Earth!
Regards, Dick

ya still got it kid

 

[FD1000]

I'm over 4% using 99+% bond OEFs in 2026, thanks mainly to EGRIX.
While I sold everything last Monday. I sold EGRIX several days before the above based on this post.

Why I like certain alternative investments

Likewise.... I sold 1/4 of QLENX yesterday. Debating what to do with the cash, so I'd be interested to hear what other alternatives you choose. thx If you poke around a bit, you’ll find it. It finished only a little over a percent below QLENX in the 3 year time frame and it is off to a decent...

www.early-retirement.org

The only thing that matters to me is the current market. Very little of my approach is based on the past, because conditions are rarely the same twice. My rule is simple: I prefer to exit early rather than risk losing more than 1%. In my experience, only certain bond open-end funds (OEFs) allow that kind of control. Stocks and leveraged fixed-income CEFs can experience very high volatility on critical days. Bond OEFs, on the other hand, have often given me 5–10 days to assess the situation and exit with only a small loss.

During market meltdowns, several things can happen:
* A fund may drop 6–7% and then rebound 2%. That rebound tempts investors to add more money—either from cash or by selling funds that didn’t fall much. Sometimes buying the dip works, but the one time markets fall 20–30%, you may find yourself completely unprotected.
* Correlations can move close to 1. Diversification stops helping just when you need it most. Hoping for a better outcome is not a reliable investment strategy.
* You always have to ask: Is this situation unique? Is there a clear solution? Markets dislike uncertainty. For example, crude oil moved from about $65 on February 26 to $91 just nine days later—a roughly 40% increase.

Can anyone say how high it will go or when it will fall? No. That uncertainty is why I step aside.
Of course, I’ve been wrong many times. When conditions improve, often within a few days, I get back in. But when I’m right, I typically stay out for three to four weeks. In 2022, I was out of the market for about ten months.

Very seldom, I can't resist a great opportunity when investors get really stupid. See this link.

What is your best idea for investing today

I'm at 99+% money market, sold a couple of weeks ago. Read my profile. I'm a bond OEFs trader, but sometimes I would trade riskier stuff for hours-days, especially when risk is high like now. For me it's PDI. The Friday sale was a panic one. It's one of the best CEFs and did well before. While...

www.early-retirement.org

So, give me another 20% decline in 2 days and I will take the opportunity.

 

[Randy145]

Sure...Create a watch list of your holding whether you elect all holdings, CEF holdings, ETF/MFs, Outside broker holdings, etc. (I have six watch list). In the watch list you can select dividends tab (among other tabs).
BTW... Watch list tab resides under the News and Research tab

Ok, gotcha. Thanks

 

[retired at 48]

I use the term "hedge" because managed futures are uncorrelated with the stock market and, historically, when the stock market went through bear markets, managed futures went...

Stefansm...Thanks for your series of posts...

I made investing a hobby 59 years ago, and try to learn everything about everything. Also years ago bumped into a guy called "Capecod" along the way!

R48

 

[DrVenture]

Not even correction territory, and the chicken littles are clucking…

Sometimes all of those clucks signal it is time to check the henhouse for predators. If one waits until a correction (10-19%) you may lose quite a few egg producers. For many investors, the lower it goes, the harder it becomes to sell.

It does depend quite a bit on ones age. One of our more notable voices sold weeks ago. It may have been construed as a hint.

 

[DrVenture]

I see a lot of investors panic, but:
YTD, the only asset class down (slightly) is stocks, with S&P (red in the perf chart below) about -1.4%.
PDI (blue) is up 1.8%.
My portfolio, of ~ 75% CEFs and 25% managed futures hedge is up 2.8%.
And the managed futures hedge index I use (DBMF - yellow) is up ~9.5%. (DBMF, which replicates the positioning of the 20 top CTAs is currently long oil, short S&P, short Yen, long US treasury bonds).

I appreciate your well supported posts. Not panic time. agreed. Adding color, YTD GOF is -8.69%, YTD PDO (widely held here) is +0.31% (but -2.37% in 1-week). PFN -3.83 YTD. In addition to being already 10 weeks into the year with the S&P down slightly, Nasdaq is -3.68% and DJIA is well off its February high. PDI is -3.21 for the 1-month. All that money that fled to INTL fell off a cliff last week, I see equity funds that dropped 7-10% in 1-week. With known correlations of CEFs to equities, there are some warning signs.

I am feeling cautious at this point. And I tend to be a buy/hold high risk investor. Let us know when you start to see a reason to feel more nervous. It would be appreciated by many.

 

[COcheesehead]

Everything is fine and dandy…until distributions are cut. Some won’t and just distribute more ROC. Some already have.

 

[RobLJ]

Tomorrow should be velly intellesting for us'ns in CEFs and elsewhere: I just saw that oil futures were up 26% tonight. I had to relook at the chart because I originally thought it was 2.6%.

 

[joejetski]

Sometimes all of those clucks signal it is time to check the henhouse for predators. If one waits until a correction (10-19%) you may lose quite a few egg producers. For many investors, the lower it goes, the harder it becomes to sell.

It does depend quite a bit on ones age. One of our more notable voices sold weeks ago. It may have been construed as a hint.

That voice is almost totally invested in high risk/high reward assets. And if that was my investing style and I had his expertise and experience, I would be mostly out also. I have less than 10% of my portfolio in those assets. Most of my portfolio is in stable assets (treasuries, multisector bonds, etc.), utilities, some energy and MLPs (and bought more early last week). I still have almost 20% of portfolio in ~5% CDs purchased in spring 2024 maturing between April and November. More than one way to play the CEF game. My current portfolio (mostly unchanged) is at post #9 in this thread.

I believe that some risk assets will tumble from their lofty valuations. I am looking forward to buying some of them starting next month if they are still on sale when my CDs mature.