High Yield Spotlight

There’s a path for cyclicals to do well in the future, especially since they’re already so beaten down and cheap. The scenario I lay out here would be particularly advantageous for the financials. The more aggressive play would be business development corps (BDCs). The First Trust Specialty Finance & Financial Opportunities Fund (FGB) targets this space.

DoubleLine operates a trio of fixed income-focused closed-end funds, including the DoubleLine Income Solutions Fund (DSL). This fund, while not the runaway success of Gundlach's previous fund, has still developed a decent track record in its own right.

One of my favorites is the Cohen & Steers Closed-End Opportunity Fund (FOF). It’s a CEF-of-funds that’s ideal for those that want to capture the high yield potential of these products, while at the same time take advantage of the active management feature that can potentially outperform the broader market.