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TECHNICAL NIGHTMARES. BUY EATON VANCE HIGH INCOME TARGET TRUST 2021

June 20, 2017

Last week we down-loaded the new update to Windows 10.  In typical Microsoftie fashion the damn thing does not work and worst of all we did not have our Fidelity stock trading platform for two days.  So last week we spent days trying to get our machine running again.  That issue is resolved but new troubles continued yesterday.  Our main modem decided to blow-up and we again were out of commission.  ATT finally showed up at 8pm and we are back in action.

In fairness both Microsoft and ATT have been very responsive.  But why do Microsoft’s upgrades continually FAIL.

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Today we are looking at EHT.  Regular readers know we are heavy into individual corporate bonds.  We have made a LOT of money in corporates, ALTHO the high paying bonds are being called and it is very difficult finding replacements that pay anything.  We have discussed this many times.

So we are very interested in EHT which owns corporates BUT as a closed end fund, they use leverage to boost the yield.  Yes you are elevating the risk levels, obviously, and you need to be aware of this before buying EHT.

This is also not your typical bond fund as EHT will LIQUIDATE in 2021.  So this is very similar to the Guggenheim funds that we have been holding for years in the Core Portfolio.  EHT ‘acts’ like a single corporate bond that matures, BUT provides diversification as it holds approx. 125 bonds.

GO TO CORE PORTFOLIO to see current positions.

EHT is paying 6%, very nice in this low rate environment.

•Seeks to generate high current income from a diversified portfolio of short-maturity high-yield bonds, which have historically produced higher income and lower correlation to interest-rate movements than higher-quality corporate bonds.

•Utilizes a target term structure aimed at limiting interest-rate risk, credit risk and market price volatility over the life of the Fund.

•Searches for investment opportunities using a well-defined investment process that has been in place for over 20 years.

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Must read article:

https://seekingalpha.com/article/4082503-rather-listen-one-market-better-stick-credits?app=1&uprof=46&isDirectRoadblock=false

 

 

 

 

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