Cohen & Steers Tax-Adv Pref Secs and Inc Fund

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund provides investors exposure to a portfolio of preferred and other income-focused securities. PTA looks better in a lower-rate environment, and we've already seen the fund recovering meaningfully from its lows last year; total returns were helped even further by the discount narrowing. The fund provides investors with an attractive ~7.7% distribution rate and should see income coverage improve as the Fed cuts rates.

PTA: Discount Narrows But Fund Positioned To Benefit From Lower Rates

The Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund offers a 7.68% yield, higher than the major fixed-income indices, which provides substantial income for investors. Despite a 16.77% decline in share price over three years, the fund's large distributions significantly boost total returns, showing the power of high yields. The fund's cash holdings fell significantly after October of last year, suggesting that it bought into the rally in preferred stock.

PTA: This CEF Spent Down Its Cash Position To Profit From The Preferred Rally

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund and Flaherty & Crumrine Total Return Fund have been performing well as rates have stabalized. PTA has outperformed FLC in terms of total NAV and share price returns over the last three years thanks partly to being hedged. Both funds are leveraged and may benefit from future rate cuts, but it is FLC that could potentially see the greater rebound.

PTA And FLC: Exposure To Preferred Securities And Monthly Distributions

The Cohen & Steers Tax-adv Prd Sec and Inc. has a current yield of 8.78%, which is lower than some of its peers. The PTA closed-end fund's recent share price performance has been underwhelming, with a decline of 0.97% since the previous article was published.

PTA: This Fund Could Be Vulnerable To A Market Correction

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund remains an attractive place to invest in the preferred space. The fund has experienced volatility due to leverage and exposure to convertible contingency securities, but its total NAV returns have held up well. PTA's distribution yield is 8.73%, but NII coverage is low and capital gains have not fully offset the decline in net investment income.

PTA: Remains A 'Buy' At An Attractive Valuation

Aberdeen Standard Global Infr Inc Fd

BlackRock Enhanced Equity Dividend Trust

Blackrock Health Sciences Trust

BlackRock Science & Technology

Blackrock ESG Capital Allocation Trust

Eaton Vance Tax-Advantaged Global Dividend Income Fund

John Hancock Tax-Advantaged Dividend Income Fund

NXG NextGen Infrastructure Income Fund

Western Asset Investment Grade Income Fund

PIMCO Dynamic Income Opportunities Fund

John Hancock Premium Dividend Fund

Cohen & Steers Real Estate Opportunities and Income Fund

Cohen & Steers Quality Income Realty Fund

Reaves Utility Income Fund

I have a total of 41 positions in my closed-end fund portfolio, with the top ten positions making up 36.52% of the portfolio. We have four new names making their way to my top ten list since the prior update, but three were already positions that have simply grown to be larger allocations. Closed-end funds overall look to be a place of opportunity as discounts remain historically wide across both equity and fixed-income-focused funds.

My Top 10 Closed-End Fund Holdings: December 2023

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund has an 8.65% current yield, but other fixed-income closed-end funds offer higher yields. The fund's shares have outperformed the fund's portfolio in recent months, but it is still trading at a discount. The fund failed to cover its distribution in the most recent reporting period, but it appears to be overcoming this problem lately.

PTA: Some Improvements, But Shares Are Not As Attractively Priced

The Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund offers a high current yield of 9.05%, making it attractive to income-seeking investors. The fund has increased its distribution in the past year, indicating strong management and performance. The fund's leverage and exposure to interest rates pose risks, but its shares are currently undervalued, providing a margin of safety.

PTA: Reasonable Price, But Questions About The Distribution

BlackRock Credit Allocation Income Trust

MFS High Yield Municipal Trust

DoubleLine Income Solutions Fund

Eaton Vance Municipal Income 2028 Term Trust

Eaton Vance Short Duration Diversified Income Fund

Eaton Vance

Flaherty & Crumrine Total Return Fund Inc

Blackrock Floating Rate Income Strategies Fund Inc

Nuveen Floating Rate Income Fund

Deutsche Strategic Municipal Income Trust

Nuveen Dynamic Municipal Opportunities Fund

Nuveen Municipal Credit Opportunities Fund

Nuveen Municipal Income Fund Inc

Nuveen Select Tax-Free Income Portfolio

Nuveen Municipal Credit Income Fund

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

PIMCO Access Income Fund

Pimco High Income Fund

Putnam Master Intermediate Income Trust

Pimco New York Municipal Income Fund

Western Asset Premier Bond Fund

Taxable closed-end fund discounts have narrowed, reducing their attractiveness, while credit spreads have tightened, producing returns in some areas of the CEF market. Municipal CEFs remain exceptionally cheap, with discounts wider than 99% of historical observations. The risk-reward in the taxable bond CEF space is on the downside, while the upside potential in municipal CEFs is significant, but dependent on a shift in Fed policy and inflation.

CEF Report August 2023: Taxables Get Bought And Are Not Very Compelling, Munis Look Best

Carlyle Credit Income Fund

We review CEF market valuation and performance through the third week of July and highlight recent market action. CEFs continued to rally in July, buoyed by a soft landing narrative.

CEF Weekly Review: 'Interest Rates' Don't Exist

Cohen & Steers Tax-adv Prd Sec and Inc is recovering from the banking crisis and offers the potential for decent performance due to its valuation. The fund has hedged against rising rates using interest rate swaps. The fund's recovery has been aided by the stabilization of banks and a slower pace of interest rate increases. Investing in PTA is a bet on no more large regional bank failures and a belief that interest rates will not rise significantly beyond the two anticipated hikes.

PTA: Attractive Discount With A Brighter Looking Future

PTA has recently released its semi-annual shareholder report and we take the opportunity to provide an update. PTA net income has fallen along with nearly all other credit CEFs. However, what GAAP income misses is the large contribution from its swap portfolio. PTA along with its sister fund LDP remains an attractive pair to rotate between, particularly for tax-sheltered investors.

PTA: Sticking With This 9.4% - Yielding CEF For Preferreds Exposure

Cohen & Steers Ltd. Duration Preferred & Income Fund, Inc.

Cohen & Steers Select Preferred and Income Fund

We review CEF market valuation and performance through the last week of June and highlight recent market action. CEFs had a great week, finishing June in strong form with higher-beta sectors in the lead. The 3-month/5-year yield curve is close to its most inverted level, which creates a strong headwind for net income of leveraged CEFs.

CEF Weekly Review: Inverted Yield Curve Is Not Doing Leveraged CEFs Any Favors

Nuveen High Income 2023 Target Term Fund

We review CEF market valuation and performance through the first week of June and highlight recent market action. CEFs finished in a strong fashion, partly reversing the weakness over May. With a weak May behind us, we take a look at seasonality and whether "sell in May" works in CEFs.

CEF Weekly Review: Sell In May Worked This Time

Flaherty & Crumrine Preferred Income OpportunityFund Inc

Preferred closed-end funds have been negatively impacted due to rising interest rates; then, the bank collapses pushed them down even further. When things are most negative, that can be the time when there are the most opportunities for those that can handle some volatility.

PTA And PFO: 2 Preferred Closed-End Funds Trading At Attractive Discounts

Nuveen Preferred & Income Term Fund

We review CEF market valuation and performance through the third week of April and highlight recent market action. The CEF market was mostly down as interest rates and credit spreads rose over the week.

CEF Weekly Review: Bank Wobble Drives Deleveraging In Some Preferreds CEFs

First Trust Intermediate Duration Preferred & Income Fund

Preferreds Opportunity: Assessing The Carnage, What's Been Thrown Out With The Bathwater

Credit Suisse Asset Management Income Fund

Credit Suisse High Yield Bond Fund

Western Asset/Claymore Inflation-Linked Securities & Income Fund

We review CEF market valuation and performance through the first week of April and highlight recent market action. CEFs had a fairly flat week with higher-quality / longer-duration sectors outperforming due to the continued drop in longer-term Treasury yields.

CEF Weekly Review: The Key Difference Between Accounting Income And Cash Flow

PCM Fund

Recent market volatility has opened up valuation divergences between very similar CEFs, creating opportunities for switches or outright holds. This offers income investors an opportunity to pick up additional yield, adopt a more defensive stance, and generate alpha in their portfolios.

Market Volatility Opens Up More CEF Relative Value Opportunities

Credit Suisse

Flaherty & Crumrine Dynamic Preferred & Income Fund

Flaherty & Crumrine Preferred Securities Income Fund Inc

John Hancock Preferred Income Fund II

John Hancock Preferred Income Fund

Nuveen Preferred & Income Opportunities Fund

Nuveen Preferred & Income Securities Fund

Nuveen Preferred & Income 2022 Term Fund

Nuveen Variable Rate Preferred & Income Fund

Flaherty & Crumrine Preferred Income Fund Inc

iShares Preferred and Income Securities ETF 

UBS Group AG

Today, I wanted to take a broader look at the preferred closed-end fund space. After struggling for most of the last year due to rapidly-rising interest rates, the latest banking failures sent preferred CEFs spiraling.

Preferred Closed-End Funds: Out Of The Frying Pan Into The Fire

Investors are in desperate need of income due to the incredibly high rate of inflation in the American economy. Cohen & Steers Tax-adv Prd Sec and Inc invests in a portfolio of preferred stocks and bonds in an attempt to deliver a very high yield to investors.

PTA: This CEF Is Generally Attractive, But The Declining Assets Are Concerning

Bank failures in the U.S. and elsewhere have caused air pockets in parts of the preferreds market. We take a look at the impact of recent developments on the sector, including the price action in AT1s.

Preferred CEF Update: Global Bank Crisis Takes A Toll On The Sector

American Tower

Crown Castle International

Digital Realty Trust

Microsoft

Tortoise Essential Assets Income Term Fund

After a strong January, the markets have taken a turn lower for the month of February. While a general pause could be warranted after such a run, strong economic data and inflation sent the markets lower.

4 Closed-End Fund Buys In The Month Of February 2023

We review CEF market valuation and performance through the second week of February and highlight recent market action. Nearly all CEF sectors were down on the week, as lower stocks and Treasuries were the key headwinds.

CEF Weekly Review: Don't Always Believe Fund Website Distribution Sources

Invesco Senior Income Trust

We review CEF market valuation and performance through the fourth week of January and highlight recent market action. CEFs had another strong week with all but the highest-quality sectors rallying.

News for Cohen & Steers Tax-Adv Pref Secs and Inc Fund ETF (PTA)