I was updating some info on the CEF preferred page and noticed that some months ago I had added the ‘coverage ratio’ to the list.
Us conservative people like to see really solid coverage ratios–the higher the better.
The list is here–and on the right hand side we have coverage ratios for the senior securities. The coverage ratio is the asset value divided by the senior securities liquidation amount.
While the current yields on these securities are modest I can really sleep well at night owning some of these issues.
Disclosure – we hold a number of these preferreds.
AllianzGI Convertible Fund 5.625% preferred (NCV-A) AllianzGI Convertible Fund II 5.50% (NCZ-A), Ellsworth 5.25% Preferred, Bancroft Fund 5.39% preferred (BCV-A), Gabelli Utility Trust 5.625% preferred (GUT-A) and the Tricontinental 5% preferred (TY-)–and I forgot Kayne Anderson MLP 3.5%.