Rearranging Fixed Income Portfolio

Did some thinking last week, today started acting.

I don't like First Trust Strategic High Income Fund (FHY) anymore. The fund reduced distribution and started including return of capital into distribution. ROC doesn't do anything for you, it just complicates your tax return. I decided to replace it with Credit Suisse High Yield Bond Fund (DHY). Distribution yield is higher, and it doesn't include ROC most of the time. I did my first trades today.

A little bit of trading history for this year: I didn't mention it before, but I did some Facebook (FB) option selling (naked puts and covered calls). Profitable so far, even though first time covered call got exercised, second time - put.

You can see those trades on my twitter account.

 

Full disclosure: author is long FHY, DHY, FB and short FB June puts and calls.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.