ACP: A High Beta CEF To Be Traded (Downgrade)
The abrdn Income Credit Strategies Fund (ACP) has been downgraded to a sell due to concerns over its sustainability. The fund is characterized as a high-beta, global high-yield bond closed-end fund with significant leverage and non-U.S. exposure. Analysts highlight that only a portion of its distribution rate is supported by net investment income.
- ▪ACP is a high-beta, global high-yield bond closed-end fund with 30% leverage.
- ▪The fund's distribution rate of 17% is deemed unsustainable.
- ▪Only 49% of the distribution is supported by net investment income.
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