AllianzGI Convertible & Income Fund Prices New Preferred

As many readers already know AllianzGI Convertible & Income Fund (NASDAQ:NCV) has priced their new perpetual preferred with a coupon of 5.625%.

This is kind of a surprise bonus as the AllianzGI Convertible & Income Fund II (NASDAQ:NCZ) priced a new preferred with a coupon of 5.50% last week and we doubt there is a nickel worth of difference between them.  We should note that this issue has traded weakly on the Grey Market since issuance–around $24.80-$24.85

The new issue has a OTC Grey market ticker of NZCZP.  We are not seeing the ticker being active on the eTrade platform as of yet.

The final prospectus can be seen here.

Since this is a preferred issue of a closed end fund (CEF) the company is required to have an asset coverage ratio of 200% (or more).  The company filing shows the a current asset coverage ratio of 262% on preferred shares.

Disclosure–we bought a measly 100 shares of the 5.50% issue in one of our accounts–we certainly realize the risk to net asset value (share price) if interest rates continue to move higher.



3 thoughts on “AllianzGI Convertible & Income Fund Prices New Preferred”


    I still believe the FED under new leadership is targeting an interest rate. I see no need to increase rates right now. If you do 1 more and move to neutral – no debate. But they seem determined to do more.

    How does this relates to AllianzGI ? I primarily invest in investment grade rate offering. This year the range has been 5.5% – 6.5%. It may be time to take profits on the 5.5% to 5.9% and start moving up the interest rate ladder. Looks like the Fed is on a mission

    1. SteveA–I think the rate increase for this month is built in–done deal. From here forward as I see things now increases may stop–of course there is potential for blow out economic numbers ahead-but I think not.

      1. I pray you are right. We need to let data drive the decisions not some rush back to “historical norms”.

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