Fitch: Evolving Use of Leverage and Derivatives by U.S. Closed-End Funds
NEW YORK–(BUSINESS WIRE)–Many U.S. closed-end funds (CEFs) continue to utilize traditional forms of cash-funded leverage such as bank loans, debt or preferred stock in order to enhance yields and returns for their common shareholders. Additionally, CEFs may also utilize various types of derivatives to meet their investment objectives, either for purposes of hedging or as means to more efficiently achieve return and leverage targets, according to a special report published today by Fitch Rating
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