2 Comments

EHT. FAKE NEWS.

December 8, 2017

FAKE NEWS EVERYWHERE:  We do not listen to CNBC and the financial networks.  But yesterday at the gym we overheard a rube on CNBC forecasting a recession in 2019.  LOL  Now how in the hell can anyone talk about what is going to happen in the financial markets YEARS in the future.  Delusional.  More fake news.

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Eaton Vance High Income 2021 Target Term Trust is going ex-dividend paying approx. 5 cents.  It IS currently in the Core Portfolio.

We like this position as all the bonds mature by 2021 and the fund will cease operations:  hence the name “target term”.  This is NOT your typical bond fund which never closes.  In other words, EHT acts like the Individual Corporate Bonds that we hold:  they mature at a given date and your money is returned.

Another key benefit is the diversification:  EHT holds over 100 positions.

The yield is 5.9% and the price on Thursday was $10.14.  Try to get this at $10.08 or less.

We suggest you BUY EHT as a new holding, OR add to your current position. 

 

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2 comments on “EHT. FAKE NEWS.

  1. Is it worth paying the 1.5% in fund expenses to obtain that diversification ?
    Would the discount to NAV offset the part of the expenses for an investor that hold to maturity ?

    • This CEF uses leverage which essentially covers the cost of fund expenses. So you are getting professional management of over 100 positions for “free” and still getting a very reasonable return. Most readers do not have the time or ability to locate and manage this many holdings.

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