LVS asked about closed end fund Highland Income Fund (HFRO) – a fund which tried to convert to a diversified holding company last year–they were unsuccessful. The company has a 5.25% perpetual outstanding (HFRO-A) which is now trading at $20.15 for a current yield of 6.67% – the issue is rated A1.
In 2021 the company ‘deleveraged’ the company so that their current asset coverage ratio is around 624% as of 6/30/2022 (total assets $1.248 billion, liabilities and preferred stock $200 million).
The last time I took a close look at Highland was late in 2020—they are much improved since then—much.
Rather than me walking through the details George Spritzer who frequents our pages here just wrote a Seeking Alpha piece on 10/18/2022 and while I seldom send readers that direction there is no use reinventing the wheel.