John Cole Scott: BDC worries are creating headlines, opportunities
The stock market has been beating up business-development companies, with the sell-off largely being blamed on the artificial intelligence boom and the high number of loans that BDCs make to software ...
Parametric’s Milner: Closed-end funds are reaching a point of ‘great opportunity’
Mark Milner, senior investment strategist at Parametric Portfolio Associates, says that a lot of asset classes of closed-end funds have now reached double-digit discount territory, "which historically has been a good opportunity to buy closed-end funds,"...
Octagon’s Lam: Rising rates are creating an opportunity in the loan market
Gretchen Lam, senior portfolio manager, Octagon Credit Investors -- sub-adviser on the XAI Octagon Floating Rate & Alternative Income Term Trust -- says that while economic conditions are challenging and that a recession will be bad for the credit markets...
John Cole Scott on BDCs, how they stack up to closed-end funds and more
John Cole Scott, Chief Investment Officer at Closed-End Fund Advisors — the Chairman of the Active Investment Company Alliance — returns to The NAVigator in an ongoing project to answer audience questions, this week diving into the...
John Cole Scott on Well-Managed Portfolios
In this interview with Jane King, John Cole Scott, President and CIO of CEF Advisors, explains how a well-managed portfolio should contain a mix of high-yielding closed-end funds (CEFs) and business development companies (BDCs) to help generate income for clients. Scott says those funds have been yielding between 7% and 14%, outperforming stocks and bonds. That can be helpful for retirees looking to avoid return risk, Scott says.
Scott also speaks to the tax-planning benefits of CEFs and BDCs, many of which often enjoy “pass-through” tax treatment. And municipal bond fund CEFs are federally tax-free, he adds. Scott also explains how these funds can offer diversification benefits and operate as a potential hedge against inflation. With an eye to monitoring market conditions, Scott says his firm actively manages portfolios containing CEFs and BDCs and makes changes as appropriate.
Learn more about John Cole Scott, CEF Advisors and Hybrid Income Portfolio
