MGF: There Is A Time To Buy And There Is A Time To Hold (Rating Downgrade)
MGF
seekingalpha.comSeptember 15, 2024
MGF has delivered strong performance in 2024: The fund has gained over 7% due to falling interest rates. Duration-driven gains: The fund's long duration has amplified its gains from declining rates. MGF is primarily invested in Treasuries and MBS bonds, making it a rates play.
MGF: Transforming Treasury Returns Into A 7.8% Yield
MGF
Seeking AlphaFebruary 15, 2024
The MFS Government Markets Income is a closed-end fund holding Treasuries and Agency MBS bonds. The CEF offers a 7.8% yield, but utilizes return on capital, eroding the initial investment over time. The fund is sensitive to lower rates due to its long duration (6.4 years), making it an appropriate vehicle for a monetary easing cycle.