VVR Stock Recent News

Interest rates are likely to remain elevated due to the strong U.S. economy, despite inflation concerns. The U.S. debt has reached a record high, and fears of a government shutdown are exacerbating market concerns. Investing in CEFs that hold floating rate senior loans can provide a high yield income stream that benefits from rising interest rates.

The high inflation rate in the US is causing financial strain for Americans, leading to desperate measures such as dumpster diving and pawning possessions. Investors can combat the rising cost of living by investing in closed-end funds that specialize in generating income. The Invesco Senior Income Trust is one such fund that offers a current yield of 11.94% and has a stable performance track record.

Invesco Senior Income Trust has performed well in 2023, with a flat NAV and a high dividend yield. VVR is currently paying a 12% yield, which is fully covered and is expected to be supported in 2023 as rates remain higher for longer. The fund's discount to net asset value has been extremely volatile in 2023, mainly driven by market expectations around a Fed pivot.

The VVR fund is a senior loan-focused closed-end fund. It pays a 13.1% fully-funded forward yield but only earns 3-5% average annual total returns.

We review CEF market valuation and performance through the fourth week of January and highlight recent market action. CEFs had another strong week with all but the highest-quality sectors rallying.

The Federal Reserve's interest rate tightening scheme has had a negative effect on most fixed-income securities. Invesco Senior Income Trust invests in floating-rate loans, which should prove more resilient to rising rates than traditional bonds.

One of these 2 high yielders has raised its payouts 4 times so far in 2022, the other one has raised it 2X. They yield 9.97% and 10.66%, and pay monthly.

October had the broader indexes rebounding after their lackluster September. With limited cash to put to work this month after an aggressive September, I was more conservative in buying.

VVR is a fixed income CEF focused on leveraged loans. Leveraged loans are a floating rate asset class that has seen their distributable all-in yields increase as the Fed raised rates.

We review CEF market valuation and performance through the last week of September and highlight recent market action. September was the worst month for CEFs since March of 2020, with a double-digit drop for the broader CEF space.