EDF: Time For An Upgrade For This CEF

Impact · against what's priced in

The upgrade of EDF to 'Hold' is not a catalyst as it is based on a price decline that has already occurred. The discrepancy between the stated 16% yield and the 9% distributable income remains a fundamental drag on NAV.

EDF−0.10

No priced-in read yet

In context

The upgrade to 'Hold' reflects a valuation floor reached after a 15% price drop, but the reveal that true distributable income is only 9% versus the stated 16% yield indicates significant NAV erosion via return of capital.

Read from the article alone

• credit spreads▲150%
• EDF
• cef
• em bonds
• emerging markets
• fixed income
• income fund
• interest rates
• yield