Updated Gabelli Asset Coverage Ratios

We did update the Gabelli CEF coverage ratios last week–through 12/31/2019.

Most of them are in good shape–coverage ratios of near 300% to 856%. There are a couple that likely will break the 200% ratio, but they will have time to raise more equity.

Obviously the higher the coverage the better so folks may want to consider the coverage ratio into any possible buys they do.

We love the Tri-Continental TY-P 5% shares with over a 4000% coverage ratio, but it is trading at $56 and the call price is $55 so there is some call risk. I do own some of this issue.

CEF Preferreds

On the other hand I would be careful with the specialty finance companies–Oxford Lane, OFS Credit, Eagle Point, Priority Income and Highland Income. These are all unrated and with the CLOs they hold they are likely to face significant stress.

9 thoughts on “Updated Gabelli Asset Coverage Ratios”

  1. For what it’s worth I just saw where Bancroft Fund just suspended a transferrable rights offering they had going on for existing shareholders to acquire shares.

  2. I can’t believe some of these blue chip preferreds. High quality companies that 3 months ago were trading at well over $27 and even as high as $28 now can be had for $23 to $25 a share. For those that have the cash available you may never see these opportunities again. Once this virus gets solved and a vaccine is available rational and logical minds will return. Also now is the time to pick up these bargains because down the road any new issue by these same companies will have extremely Low Coupons. Just my humble opinion.

  3. Tim, where do you find the coverage ratio data for the CEF preferreds? I haven’t looked into CEF’s in a while and checked CEFconnect.com and didn’t think i could find it.

      1. TIM
        not sure I followed you. Did you calculate the coverage or did you post it. Don’t see it. Could you confirm again link if posted. tia sc
        p.s. posted here yesterday to yo question about why buy uts now with the yields you can get on cef munie funds i.e. about 4.5-5% and tax free. Could be that it is an issue of allocation not all or nothing In all events if you have time would be interested in your thinking. tia sc

          1. Tim
            thanks the replies. I did not mean to suggest that you want to start covering munies. You do enough here. What I really was seeking was your view on the subject i.e. why you seemed less interested in munies. Could be that you are actually quite interested but just not part of the conversation here or that munies have other issues which I’ve not considered which mean that you find them less interesting. That was the jist of my question not asking for more. Your efforts are way beyond what most of us could do. thanks again. sc

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