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Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Closed end funds||Date: 1/26/2011 8:28 AM|
|Author: aj485||Number: 32169 of 36082|
Both funds invest in about the %age of junk - about 25-30%. After that, their portfolios diverge; one to MBS's and the other to convertibles. They also hold smaller %ages of other fixed income instruments.
Basically, I'm trying to determine if NVC is the better hold based on their "other" holdings, i.e., that covertibles are better than MBS.
Given all the legal actions going on around MBSs (examples: http://www.reuters.com/article/idUSTRE70O7X820110126 http://www.reuters.com/article/idUSN1926043720110119 http://www.structuredfinancenews.com/news/-204209-1.html ) it's not surprising that there is some FUD around funds like EVV that invest in them.
Since you own both, the question for you is, do you want to sell EVV at less than par to buy NVC at a premium? That's probably dependent on your entry point and risk profile.
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