Jim, the major problem with Govt. CEFs is that they are all really mortgage funds and not Treasury funds. With Mortgages, you get slightly higher current yields, however, when bond prices go up, they act like short term securities, and when bond prices go down, they act like long term securities. Which means they suck all the time. <g>
The only one I can recommend is MSDW Govt (GVT), which is the only one with a smart manager. He still buys mortgages, because that is the way his game has to be played, but at least he has avoided the garbage mortgages and leverage.
For my own druthers, I'd rather hold cash and buy bond futures calls or bond rate puts. |
