NZF: A High Yielding, Well Run CEF, But The Distribution Is Likely Not Sustainable
NZF
seekingalpha.comDecember 4, 2024
NZF offers a high distribution yield of 7.33%, but its earnings coverage ratio and negative UNII suggest a possible future distribution cut. The fund's discount to NAV is currently -5.24%, below its 6-month average, indicating a less favorable buying opportunity. NZF has a leverage ratio of 39.49% and an average leverage cost of 4.28%, with a significant interest rate exposure of 12.98 years.