Jun 15, 2021

Managers Starting to Favor Interval Funds for Structured Credit Finance

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By |2021-06-22T12:53:35-04:00June 15th, 2021|

As banks have faced greater regulatory scrutiny since the adoption of Dodd-Frank in 2008, interval funds are becoming the new liquidity provider in structured credit finance. During the Alternative Credit Investing panel during the Active Investment Company Alliance’s (AICA) Interval Fund Boot Camp and Manager Spotlight on March 31, Christian Aymond, a Principal at A3 Financial Investments, noted that alternative credit assets work best in an interval fund structure, in large part because the funds do not have to offer daily liquidity.

Jun 15, 2021

Low Interest Rates and Wider Spreads Providing Greater Opportunities for Fixed Income Interval Funds

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By |2021-06-22T12:52:17-04:00June 15th, 2021|

Credit investments can be seen as an insurance policy, and the best time to make these investments is right after a great deal of dispersion and volatility in the markets, as we saw in 2020. Following last year’s market volatility, spreads are currently widest, and managers and investors are essentially paid to take on more risk right now.

Dec 17, 2020

Litigation Expected as SEC’s Ruling on Boulder No-Action Letter Limits Activism

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By |2020-12-22T12:26:49-05:00December 17th, 2020|

The SEC’s decision in May to rescind the Boulder No-Action letter, allowing a closed-end fund to opt into a state control share statute without risking an enforcement action, could have a chilling effect on activism, and could face litigation for violating the Investment Company Act.

Dec 17, 2020

Managers Now Offering Term CEFs to Minimize Premium Discounts

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By |2020-12-22T09:07:40-05:00December 17th, 2020|

While closed-end funds (CEFs) have traditionally been perpetual offerings, more CEFS have term offerings that allow investors to liquidate at net asset value and minimize premium discounts.

Dec 17, 2020

Higher Yields Spur Strong Demand from Investors for Municipal CEFs

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By |2020-12-22T09:13:23-05:00December 17th, 2020|

There has been an ongoing trend of new issuances in taxable municipal closed-end funds (CEFs), particularly from institutional and foreign investors as yields have been higher than other debt products.