Summary
FTHY Chart
FTHY: Avoid This Ticking Clock From The HY CEF Segment
The First Trust High Yield Opportunities 2027 Term Fund (FTHY) is a term CEF set to liquidate in August 2027, offering NAV payout at termination. FTHY trades at a -2.6% discount to NAV, presenting potential for discount closure upon liquidation, but carries structural risks. The portfolio's average maturity of 5.19 years mismatches the fund's one-year remaining tenor, exposing investors to market risk if credit spreads widen.
FTHY: Discount Offers Alpha Potential On 11% Yielding Fund
First Trust High Yield Opportunities 2027 Term Fund's NAV has declined from $20 to $14.24 since inception, with distributions sustaining total returns but eroding capital. The fund's 11% yield is not close to covered. With less than a 18 months to a wind-down, FTHY may offer decent total returns.
FTHY: Monthly Distribution From High-Yield Fixed-Income Exposure
First Trust High Yield Opportunities 2027 Term Fund offers high-yield fixed-income exposure with a ~5.5% discount and a term structure set to liquidate by Aug. 1, 2027. FTHY's blend of bonds and floating-rate senior loans helps offset leverage costs, while its 10.72% distribution yield is attractive but not fully covered by net investment income. The fund's portfolio is heavily tilted toward below-investment-grade debt, including a meaningful allocation to CCC-rated securities, presenting heightened credit risk.
First Trust High Yield Opportunities 2027 Fund Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| PER Paul E. Rasmussen SIT INVESTMENT ASSOCIATES Inc. | 2.78M | $39.53M | $37.88M | -$1.64M | -4.16% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 718 | $9,714.54 | $9,757.62 | $43.08 | 0.44% |
| WDW William Dudley Webb Jr. WORLD EQUITY GROUP Inc. | 30,972 | $424,111.75 | $421,683.78 | -$2,427.97 | -0.57% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 31,484 | $556,410.56 | $428,182.4 | -$128,228.16 | -23.05% |
| TRG Timothy R. Guthrie Bullseye Investment Management LLC | 72,041 | $1.04M | $976,155.55 | -$65,702.21 | -6.31% |
First Trust High Yield Opportunities 2027 Fund (FTHY) FAQ
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First Trust High Yield Opportunities 2027 Fund Profile
| NYSE Exchange | US Country |
Overview
The First Trust High Yield Opportunities 2027 Term Fund is a specialized investment venture that was established on June 25, 2020. As a diversified and closed-end management investment company, its primary focus is on delivering current income to its investors. Based in Wheaton, Illinois, the company operates with a strategic objective aimed at providing reliable income streams through investments in high-yield opportunities, which are carefully managed and diversified to balance risks and rewards effectively. The structured term set to culminate in 2027 indicates a targeted approach towards investment maturity, offering a clear timeline for investment realization and potential returns to its stakeholders.
Products and Services
As part of its core offerings, the First Trust High Yield Opportunities 2027 Term Fund provides a variety of investment products and services designed to meet the income needs of its clients. These include:
- High Yield Investment Opportunities - The fund specializes in identifying and investing in high-yield bonds and other income-generating securities. These are selected through a rigorous analysis to ensure they offer the potential for high returns in comparison to their risks. This service is ideal for investors looking for income-generating investments with a higher risk/reward profile.
- Portfolio Diversification - Understanding the importance of risk management, the fund provides diversified investment portfolios that spread risk across various sectors and issuers. This diversification is critical in managing potential losses and enhancing the opportunity for consistent income generation over the fund's term.
- Closed-end Fund Structure - The closed-end fund structure allows for a fixed number of shares to be issued, facilitating a focused and stable investment strategy without the continuous need to manage inflows and outflows of capital. This structure enables the fund to target investments more strategically and maintain its objectives towards providing current income to its investors.
