As a recent retiree, I have decided I need to put a portion of my assets into bonds. I notice that several closed end bond funds are selling at discounts to NAV that approach or even exceed 20%. This looks like an opportunity to obtain 120% of market rate returns at the risk that the discount will go even higher. Since I expect to hold for a long time, this looks like a good risk/return situation to me. The question is, "What am I missing here?". Looks too good to be true. Why aren't banks and insurance companies doing this?
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