Sprott Physical Gold and Silver TrustNYSE: CEF

We review the CEF market valuation and performance through the second week of November and highlight recent market action. CEFs had a strong week, with MLPs and Equity-linked sectors leading. Tax-loss season is approaching, but few income sectors are expected to be pressured due to strong market performance this year.

NEW YORK, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Prospect Capital Management L.P. (“Prospect”, “our”, or “we”) announced today a strategic partnership with iCapital, the global fintech platform driving access to alternative investments for the asset and wealth management industries. This partnership allows financial advisors to access Prospect's institutional quality CEF and BDC opportunities managed by Prospect and its affiliates, and now available on iCapital Marketplace.

SPMA represents the ticker for the new Series A preferred shares from Sound Point Meridian Capital. SPMA began trading on November 8, 2024, below the $25 par value, largely due to the underwriting process. Investment banks, having committed to purchasing these securities from SPMC at a discount, are motivated to sell them quickly, creating potential buying opportunities at attractive prices during the initial days.

We review the CEF market valuation and performance through the fourth week of October and highlight recent market action. Most CEF sectors were down this week while discounts were mixed. Invesco's CMBS CEF IHTA is set for liquidation in December 2024, with NAV performance looking better than sister fund IHIT last year.

We review the CEF market valuation and performance through the third week of October and highlight recent market action. Discounts widened despite NAV strength across most CEF sectors; MLPs and Equity-linked sectors led in October. High-premium CEFs exhibit higher volatility; investor confidence and momentum play significant roles in price fluctuations.

I reiterate my 'buy' rating for CEF due to its allocated exposure to Gold and Silver. Silver's underperformance relative to gold and copper, combined with a six-year supply deficit, presents a compelling investment opportunity. Technical indicators show silver has broken resistance.

We take a look at the PIMCO CEFs coverage, valuation, and performance. Distribution coverage for PIMCO's Muni CEFs has surged, coinciding to the retirement of auction-rate preferreds, but the increase is too high. Taxable CEFs' distribution coverage has declined, with only PDO maintaining over 100% coverage, while the rest average just above 71%.

We review the CEF market valuation and performance through the third week of September and highlight recent market action. CEF market activity was mixed with tighter discounts and lower NAVs. Western Asset Investment Grade Defined Opportunity Trust's tender offer saw less than 50% shares tendered.

Closed-end funds or CEFs that offer high yields usually come with notable external leverage, and in some cases, even with investment positions that have above-average risk profiles. Yet, the current stance assumed by the Fed has opened a wide opportunity set in the CEF segment. In this article, I elaborate more on the CEF outlook and underscore critical criteria that have to be in place for high-yield investors to access truly sustainable distributions.