High Yield Spotlight

For income seekers, covered call strategies have become a great way to generate high yields while maintaining some upside exposure to equities. The BlackRock Enhanced International Dividend Trust (BGY) takes the growth and income approach. In an environment where fixed income faces an uncertain future due to the possibility of higher rates, focusing instead on derivative income may be a better way to get your income and growth potential too.

Traditional covered call strategies, designed to improve yield but keep volatility/reward parameters within range, seem to be forgotten at this point. Is there room left for “boring” income strategies in your portfolio? The answer is unequivocally yes. The BlackRock Enhanced Capital & Income Fund (CII) could be one of those funds.

While the initial market reaction to the election results has been mostly retraced, there are a few asset classes that have continued to move higher. One of those is junk bonds. The AllianceBernstein Global High Income Fund (AWF) is the kind of diversified, risk-managed portfolio that could reduce portfolio volatility in times like these where the tail risks are increasing.