ETB Fund Flashes 15-Year Discount With 8.5% Yield on Tap
ETB is trading at its widest discount in 15 years while offering an 8.5% yield — a rare setup for income hunters.
If you're hunting for yield and you haven't looked at ETB lately, you're leaving money on the table. This closed-end fund is currently sporting an 8.5% yield — solid on its own — but the real story is the discount. We're talking the widest markdown in 15 years. That's not noise. That's a signal.
Closed-end funds live and die by their discount-to-NAV, and when that spread stretches to multi-decade extremes, the market is essentially handing you two potential return engines: the income stream itself and the eventual discount compression. History suggests those gaps don't stay open forever. When sentiment shifts, that discount can snap shut fast — and you want to already be in the trade when it does.
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The fund is explicitly positioned around high current income with a secondary angle of capital appreciation. That dual mandate matters. You're not just clipping a coupon and hoping for the best — you're sitting in a structure that could reward you from both directions if the discount normalizes.
The risk? Discounts can widen before they narrow, and closed-end funds can trade cheap for longer than feels rational. If rates stay elevated or sentiment on the underlying assets sours, that 8.5% yield could get tested. Do your homework on the portfolio composition before you size up.
Bottom line: an 8.5% yield at a 15-year-wide discount is the kind of setup that gets circled in red on a watchlist. The entry looks compelling. Size it right, watch the discount trend, and let the income work while you wait. Continue reading at SeekingAlpha.
