Invesco 2023 Term Trust (IHIT) Trading Lower

The Invesco 2023 Term Trust has traded down in the last week now being at $10.10/share.

IHIT had traded as high as $10.32 in the last month leaving potential investors waiting for a pullback–it is here. Current yield is 5.9%

This note is just a heads up.

8 thoughts on “Invesco 2023 Term Trust (IHIT) Trading Lower”

  1. Still learning and this is the greatest resource. Question- why wouldn’t an investor choose IHTA as an alternative/diversified option? About same yield, trading lower. Yes you go out until 12/2024 but seems like also a good option and lower cost. Thoughts?

    1. You could. Just looking at the highs and lows and swings… IHIT appears to be more stable. IHTA could easily swing either way for .60 cents. The investors of IHIT are probably more buy and hold and don’t panic sell. I personally would choose IHIT.

      1. Not going any further than cefconnect in looking at these two, there seems to be a fundamental difference between the two of them in that IHIT has not only a target maturity but also a target amount they aim to return. IHTA does not have a target return amount. That might be why it’s more volatile. The other thing that I see on both is that going by the maturities of the top 10 stuff they each own, much of it matures well beyond the 2024 target dates, like in the ’47 range. To me, assuming these holdings are not in some other way tied to a 2024 maturity, that makes them less desirable as target maturity funds because of the selling at market rates that has to occur as they approach ’24. The only relatively comparable target maturity CEF I own is EHT which is a ’21 maturity, but it’s holdings all bunch around the target date so all that has to happen for them to hit their target maturity and target return of principal targets is for the securities they hold to not default. They’ll all mature without having to be sold. Average credit quality is around BB but still, not too much credit risk.. Present current yield = 5.06% but you have to assume that current will go down on all of these as they approach their target dates.

        1. CORRECTION: Having now gone a little deeper, according to the prospectus, IHTA DOES have a target return price of $9.835 as does IHIT, with that nebulous language many of these seem to have that says something like this one does; “The Fund’s investment objectives are to provide a high level of current income and to return $9.835 per share (the original net asset value (“NAV”) per common share before deducting offering costs of $0.02 per share).” That always makes me wonder whether or not the target is actually 9.835 or 9.815.

  2. Thank you for the article Tim. I nibbled on a few thousand shares at $10.11. Not sitting on cash any more, and was good to put my cash to work. Don’t have to think about that until end of April now, and then 20,000 shares of SSWN will have matured. Then another cash problem. Maybe IHIT will still be taking a “hit.”

  3. I had sold a few hundred shares at about $10.20, but bought them back at $10.16 a few days ago. So unfortunately cannot take advantage of todays’ drop.

    Could be window dressing, as today is the last trading day of February. BPRAP has also taken a big dive, but seems to have stabilized.

    Decided to sell some CNLPL as the price is higher than I’m used to; now seeing if I can buy them back for a little lower. XD is next week, for about $0.80 .

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