BANX: Tariffs Could Weaken Bank Loans
BANX invests in riskier tranches of bank loans, offering high-yield income but with elevated risk, especially in uncertain markets. The portfolio remains stable and diversified, with modest leverage and no major disruptions or shocks year-to-date. Tariff-related risks now outweigh concerns about interest rates, as supply chain disruptions may increase delinquencies in BANX's unsecured holdings.
5 Closed-End Fund Buys In The Month Of May 2025
The market saw a strong continuing recovery in May from April's market drop. The rebound was enough to see the drop recover entirely that was seen in April, but the markets still remain off all-time highs seen in February. While there wasn't as much in terms of opportunity for buying as there was in April, I add to my CEF positions every month regardless.
Collect Double-Digit Yields From Niche Fixed-Income
Imagine a realm so hard to reach that you need special tools to get to it, but it's loaded with income opportunities. We find ways to tap into that realm's cash flow to enrich your portfolio. Stop dreaming and start dancing in the dividends raining down all around.
Income-Covered Closed-End Fund Report, April 2025
The Income-Covered CEF Report screens for funds with distribution coverage exceeding 100%, suggesting lower risk of distribution cuts and potential price declines. The report ranks CEFs by widest discounts, best z-scores, highest yields, and best combinations of yield, discount, and z-score for further research. Notable funds include HFRO, FSCO, and ArrowMark Financial Corp, though BANX's discount may be overstated due to NAV reporting lag.
BANX: Resilient In The Face Of Volatility And Providing Steady Distributions
ArrowMark Financial Corp has been holding up relatively well despite the overall equity market volatility, leading to only limited declines in terms of total returns. BANX invests primarily in regulatory capital securities of financial institutions, providing a unique exposure for retail investors and showing resilience compared to broader equity markets. What the latest decline has brought is a more attractive overall entry price, as the fund's discount has widened quite sharply, but that widened discount is closing quite quickly, too.
BANX: 8.5% Income Yield, Fully Covered Distribution, But Is It A Buy?
ArrowMark Financial Corp. focuses on high income through investments in Regulatory Capital Relief Securities, comprising 87% of its portfolio, primarily issued by major banks. BANX currently offers an attractive and fully covered 8.5% distribution yield and is currently trading at a discount of roughly -3.5% (based on NAV as of Dec. 31, 2024). It is probably a good bet on getting consistent and fully covered high income, as long as interest rates stay reasonably high. However, there are some risks involved, and the fund may be a bit pricey as the discount has significantly narrowed during the last six months.
BANX: Continuing To Deliver Solid Income To Investors
ArrowMark Financial Corp (BANX) has seen some strong total returns since our prior update, some of this was thanks to further discount narrowing. BANX invests in regulatory capital securities of financial institutions, offering a unique fixed-income exposure, delivering an 8.50% yield with strong distribution coverage. The fund's narrow discount does mean we remain more neutral; however, being able to deliver consistent quarterly distributions can still make it appropriate for income-seeking investors.
BANX: Decent Income, Occasional Risks
ArrowMark Financial Corp offers a high dividend yield near 10%, but better yields exist with similar or better credit risks. BANX's portfolio focuses on regulatory capital relief securities, providing high yields through floating rates and modest leverage. Future income may decline slightly with projected rate cuts, and BANX lacks significant capital appreciation potential compared to other funds.
3 Solid Income Picks For A Safer Retirement
Banks are masterfully skilled at extracting profits from everyday interactions. You likely can't beat them at their skills, but you can join them. We look at two avenues to invest like a bank and earn high income.
2 Ultra-Cheap Big Yields For Passive Recurrent Income
I love to buy income that's on sale. We have two discounted funds to scoop up today. Own the basics of society and our economy, so money never stops pouring into your account. Don't get distracted by the latest fad; own the basics for the strongest income.
BANX And PDX: Generating Attractive Distributions With Upside Potential
ArrowMark Financial Corp and PIMCO Dynamic Income Strategy Fund offer attractive distributions with the potential for future payout increases or specials. If we don't see increases or specials paid out, then these funds look like they have a good chance at some capital appreciation if they are retaining cash flow and gains. These funds are also trading at discounts to their NAV per share, so they aren't looking overvalued and are fairly attractive to consider initiating positions.
Arrowmark Financial: Big Yield On Niche Assets
Arrowmark Financial offers niche high-yield income investments in the financial sector. BANX focuses on regulatory capital relief securities, with top holdings in G-SIBs like Citigroup and Deutsche Bank. BANX has seen significant growth in NII and dividends, outperforming its industry and the S&P 500 on a total return basis.
