| | | Weekly CEF Summary (Short Version) – 12/10/2025 - Had some time today, so decided to pull data and generate a short version summary for today (no charts) given interest in RNP recent discount. Will do a full-version later this week. Almost done with finals and then I'm off to Hawaii :)
Overall Tone
Moderate strength across equity & hybrid CEFs, continued premium expansion in income-heavy names (DNP, PIMCOs), and improving Z-stats in ADX/ASGI. Tech-leaning funds (BST, BME, STK) remain elevated but no longer at peak momentum levels. Discounts tightened slightly across the board this week.
Quick Highlights by Category
Top Premium / Strongest Demand - DNP – Premium widened again to +9.54%; Z-stats strongly positive (1.66–2.16). Demand remains elevated.
- PCN / PDI – Premiums remain 5–6%, both with historically rich valuations.
- UTG – Moves from slight discount into +0.93% premium; rising positive Z-stats.
Deep Discount / Potential Value Opportunities - NBXG – Still heavily discounted at –12.43%, with improving Z-stats but still negative.
- ERH – Discount improved to –7.9%, but remains wider than historical averages.
- RLTY – Persistent discount (–6.94%) with negative Z-stats.
- RQI / RNP – REIT twins remain weak with discounts (–6.76% / –4.66%) and deeply negative Z-stats.
Momentum Leaders (NAV Strength + Tightening Discount) - ASGI – NAV at cycle high; premium expands to +3.32%; top-tier positive Z-stats.
- BME – Still placing well; discount steady at –7.53%, positive momentum vs 3-year averages.
- STK – Discount tightening from last week (–6.17% > –4.81%); strong NAV performance.
Stabilizing / Sideways - AIO – NAV surging but discount widening (–8.25% > –9.85%); mixed signal.
- BUI – Slight easing (–1.41% discount), neutral Z-stats.
- CSQ – Discount improves to –6.94%, but Z-stats remain soft.
Notable Moves - ADX – Significant improvement in discount (–7.02%), positive Z-stats across all frames.
- UTF – Discount slightly wider at –6.73%, but Z-stats stabilizing.
- EOS – Discount narrows from last week; Z-stats still negative but improving.
Best Risk-Adjusted Entries (This Week’s Quick Picks)
Based strictly on discount vs historical Z-stats:
- RNP – Deep negative Z-stats, durable franchise.
- RQI – Similar profile to RNP with larger discount.
- NBXG – High vol, deep discount, improving Z momentum.
- ERH – Large discount compression potential.
- BUI – Near fair value but historically defensive.
Caution Zone (Overheated / Premium Risk) - DNP – Perpetually expensive; premiums now stretched.
- PCN / PDI – Premiums are rich vs history; Z-stats still negative but rising.
- UTG – Now at a premium; not ideal for new buying.
- STK – Strong run; discount tightening but still volatile.
- ASGI – Trading at a rare premium; avoid chasing.
Two-Sentence Market Read
Discounts generally tightened week-over-week, especially among equity and covered-call CEFs, while premium-heavy income funds continued climbing. Z-stats suggest several equity CEFs are moving from “deep value” toward neutral, but REIT CEFs remain depressed.
Disclaimer
This summary is for informational purposes only and is not financial advice. Always review full fund documents and consult a financial professional before investing. |
|
