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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.

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