ARDC Stock Recent News

Only funds with coverage >100% are considered. Top lists of discount, yield, DxY, and DxYxZ are given.

The CLO asset class is worth a look by income investors due to its strong historic profile, high yields and rising income levels. The asset class offers a wide variety of securities across the entire risk spectrum, with yields from mid-single-digit to double-digit levels.

We revisit the credit fund ARDC - a historical outperformer in the fixed-income CEF space. ARDC features an attractive income profile with significant floating-rate exposure and half of its liabilities in fixed-rate format.

We review CEF market valuation and performance through the first full week of September and highlight recent market action. CEFs had a decent week as most of the space was able to easily digest higher Treasury yields.

With the backing and experience of Ares Credit, ARDC can leverage higher credit spreads in senior loans and CLOs to easily cover the 9% distribution. The monthly dividend was just raised by 5% and the discount to NAV has widened to -8% offering a unique buying opportunity.

Risk assets continue to rebound with investors focusing on the potential of a Fed pivot given slower growth and inflation. We think we will shift from a stagflationary economic regime to a deflationary bust one. That means adding duration and quality.

ARDC is a closed-end fund focused on fixed income instruments. The fund invests predominantly in a portfolio of floating rate leveraged loans, high yield bonds and CLO debt.