| | | Short-version with the chart: Monthly CEF Snapshot (4-week lookback)
Overall Tone:
The CEF market remains mixed. Equity-oriented funds are under pressure (discount widening, negative Z-stats), while utilities/infra and fixed income are showing divergence — some premiums stretched, some rare discounts opening.
Key Discount Buys - UTF (-7.7% discount, 1Y Z = -4.2) - Rare entry window; historically trades at premium.
- CSQ (-5.4% discount, 1Y Z = -2.2) - Wide vs historical norms.
- AIO (-3.3% discount, 1Y Z = -2.0) - Tech hybrid, looking oversold.
Premium Risks - PCN (+12% premium) - Still rich, even as NAV lags.
- BUI (+2.6% premium) - Premium climbing; risk of mean reversion.
- DNP (+5.1% premium) - Expensive vs peers.
NAV vs Price Divergence - UTF: NAV steady, but price dropped hard - rights offering aftermath.
- BST/BME: Tech/healthcare NAV rebound, but price discounts remain wide.
- UTG: Holding premium parity, stable.
Corporate Action Check - UTF’s rights offering explains discount swing.
- No new major ATM/RO events flagged elsewhere this month.
Suggested Actions - Buy candidates: UTF, CSQ, AIO (oversold, rare discounts).
- Hold/avoid: PCN, DNP, BUI at stretched premiums.
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