I realize that this doesn't qualify as fixed income, but there are a lot of smart folks interested in yield on this board, so I thought I'd ask.

There is a closed-end fund with ticker symbol NFJ that yields 9.5% and sells at a discount to NAV. They claim to do it with a combination of common, preferred, and convertible stock, plus some derivative instruments.

So given today's dividend yield environment, how do they generate this kind of yield? And how risky is it? My BS detector is going off, but I don't know why? Anyone have any knowledge of this fund?

tutone