JPC: Take It Over JPS

Nuveen run 4 preferred stock CEFs which makes them attractive relative value opportunities. For example, the pair of the Nuveen Preferred & Income Securities Fund (JPS) and the Nuveen Preferred & Income Opportunities Fund (JPC) run broadly similar portfolios but often see their discounts diverge. We recently highlighted the opportunity when JPC moved to a discount that was about 3% wider versus that of JPS – a divergence level which has historically offered an opportunity to rotate into JPC by holders of JPS. Outside of a wider discount, JPC also offered a higher current yield of 0.6% with both funds having a similar near-100% distribution coverage.

It looks like this recent discount divergence has already begun to close.

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