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MMT: Why Narrow Credit Spreads Make This Leveraged CEF A 'Sell' (Downgrade)
Aberdeen Multimarket Income Trust is rated 'Sell' due to its leveraged exposure amid currently narrow credit spreads. MMT's 32% leverage amplifies volatility and downside risk, especially when spreads widen, making it less attractive than unleveraged ETFs now. The fund's distribution relies significantly on return of capital (32% YTD), reflecting insufficient cash flow support from underlying assets.
Seekingalpha | 1 month ago
