No. of Recommendations: 3
Recommend the PIMCO collection of income funds including high-yield CEFs for this purpose.
These funds use varying degrees of leverage to juice the yields, mixed with varying levels of non-investment grade debt. Why PIMCO? They're the best and most experienced at this.
A great forum / community discussing these is over on early-retirement.org, with a few very knowledgeable retired bond fundies discussing the trading and ins and outs of ROC, leverage, NII, UNII, etc. I've learned a lot in the last year and have 1/3 of my portfolio invested in 11+% yields.
https://www.early-retirement.org/threads/cef-holdi...They are NOT to be held in a rising interest rate environment. They universally got crushed in '22, but most did not cut dividends (well, PTY did once in la te '21) and have more than recovered.
Again, dividends-reinvested best. (and at Fidelity and a couple of others the reinvestments are at the lowest recent 5-day NAV.)
