UPDATE–I did a little more digging and these preferred shares were downgraded by Fitch on 5/21/2022 to ‘A’ from ‘AA’. I believe they were originally ‘AAA’
Here is an item concerning the Virtus (Allianz) Fund II Convertible and Income Fund (NCZ) that shows the CEF leverage rules in action–recall that closed end funds must maintain a 200% coverage ratio on senior securities-in this case the fund has a preferred stock outstanding.
Apparently soft markets caused their ratio to drop causing a short disruption to the fund paying common share dividends. Having to postpone dividends even for a week is obviously a big negative for a closed end fund.