'Distribution coverage ratios' give clues on potential payout cuts
The NAVigator · Active Investment Company Alliance
August 20, 20218m 59s
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Show Notes
Roxanna Islam, associate director of research for Alerian and S-Network Global Indexes, discusses why her firm's indexes of closed-end funds show particularly high yields right now, but suggests that investors keep an eye on distribution coverage ratios -- which look at whether a fund's earnings can cover its payouts -- to identify issues where distribution cuts are more likely in the future.