Summary

• We review the CEF market valuation and performance through the last week of May and highlight recent market action.
• CEF sectors faced pressure from higher Treasury yields and lower stocks, with discounts widening.
• Saba's agreement with Voya to merge IHD and IAE into IEMLX is a win-win for both activists and managers, though presenting a downside to income investors.
• Loan CEFs like EFR continue cutting distributions due to tighter loan spreads, despite stable short-term rates and distributions returning to 2021 levels.
• Loan CEFs remain expensive with an 8% median discount; BDCs are favored for corporate loan exposure given sector vulnerabilities and valuation.
• Looking for a helping hand in the market? Members of Systematic Income get exclusive ideas and guidance to navigate any climate. Learn More »
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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

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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