Summary

• We review the CEF market valuation and performance through the second week of June and highlight recent market action.
• Closed-end funds (CEFs) rallied alongside stocks and Treasuries, with discounts tightening and EM debt and equity-linked sectors outperforming.
• Nuveen equity-linked CEFs, including QQQX and SPXX, hiked distributions, but covered call CEFs like QQQX continue to underperform their benchmarks over time.
• FS Credit Opportunities maintained its distribution, showing strong NAV returns and defensive characteristics.
• CLO equity funds reported marginal NAV gains, but persistent NAV losses and unpredictable pricing limit conviction in the sector.
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Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We also try

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FSCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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