CSQ: 6% Yielding CEF At A 7% Discount

Impact · against what's priced in

CSQ's current valuation is pressured by unsustainable distribution coverage and high credit risk. While the discount to NAV is notable, the reliance on return of capital or borrowing to maintain a 6% yield outweighs the value entry point.

CSQ−0.30

No priced-in read yet

In context

The fund's distribution is poorly supported, with only 20% covered by net investment income and realized gains, while leverage and unrated bond exposure increase volatility risk.

Read from the article alone

• CSQ
• asset allocation
• closed end funds
• distribution coverage
• high yield
• interest rate risk
• leverage
• nav discount
• unrated bonds

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