BANX Stock Recent News

Arrowmark Financial offers niche high-yield income investments in the financial sector. BANX focuses on regulatory capital relief securities, with top holdings in G-SIBs like Citigroup and Deutsche Bank. BANX has seen significant growth in NII and dividends, outperforming its industry and the S&P 500 on a total return basis.

DENVER, Aug. 14, 2024 (GLOBE NEWSWIRE) -- ArrowMark Financial Corp., (NASDAQ: BANX) ("ArrowMark Financial"), today announced that BANX's estimated and unaudited Net Asset Value (“NAV”) as of July 31, 2024, was $21.75.

DENVER, July 11, 2024 (GLOBE NEWSWIRE) -- ArrowMark Financial Corp., (NASDAQ: BANX) ("ArrowMark Financial"), today announced that BANX's estimated and unaudited Net Asset Value (“NAV”) as of June 30, 2024, was $21.58.

ArrowMark Financial Corp is an enticing investment choice in the high-yield space, coming back down to an attractive discount level. BANX invests in regulatory capital relief securities, which have been helping deliver solid cash flows due to their floating rates. Even with potential rate cuts on the horizon, BANX is expected to maintain strong distribution coverage as long as we don't fall back to a zero-rate environment.

DENVER, June 18, 2024 (GLOBE NEWSWIRE) -- ArrowMark Financial Corp., (NASDAQ: BANX) ("ArrowMark Financial"), today announced that BANX's estimated and unaudited Net Asset Value (“NAV”) as of May 31, 2024, was $21.76.

Inflation data suggests rate cuts may be delayed from prior expectations, highlighting the importance of maintaining some positions in less interest rate-sensitive areas. ArrowMark Financial Corp has benefitted significantly from rising rates as the underlying portfolio's income generation rose materially leading to special distributions for investors in 2023. BANX is more of an unusual CEF, and that can add some further risks to consider, but the discount remains attractive for that added risk at around 9%.

ArrowMark Financial: Niche 10% Yield, Very Strong Q3 2023 Earnings, 15% Discount

For income investors, closed-end funds remain an attractive investment class that covers a variety of asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records, pay high distributions, and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.

ArrowMark Financial Corp. offers investors a portfolio of floating rate exposure that has been benefiting from the rise in interest rates. The fund's distribution rate based on the regular dividend and share price puts the yield at 10.5%, which could reflect the returns going forward. The fund's share price is at a discount of ~20% to its last reported NAV, making it an attractive investment opportunity.

BANX experienced a significant drop in May, which continues to leave an opportunity for investors to buy at a deep discount as only a partial recovery took place. The fund's NAV has remained stable throughout the year, and its portfolio is exposed to floating-rate fixed-income securities. The fund's distribution yield is 10.83% after a recent raise and is fully covered by a significant margin, which should lead to a potential year-end special.