Advent Convertible and Income Fund [AVK] Stock Forecast

The Advent Convertible & Income Fund offers a high yield of 14.12% and invests heavily in convertible securities, providing potential for capital appreciation. The AVK closed-end fund's YTD performance has been disappointing compared to the S&P 500, but distributions have offset the share price decline. The AVK fund's leverage of 47.44% increases volatility and poses risks, and its distribution may not be sustainable, potentially leading to a cut.

Advent Convertible & Income Fund has seen an increase in income generation but also elevated leverage, making it a riskier fund. The fund's distribution rate is high, hindering appreciation on the NAV level, which causes the leverage ratio to remain elevated, too. AVK's portfolio consists primarily of exposure to convertibles and high-yield securities, but it also has a relatively smaller weighting to the tech sector.

Advent Convertible & Income Fund's discount has widened, making it more appealing, but it remains above its longer-term average. The fund's distribution yield is high at 12.69%, but the NAV rate is also elevated, which could be hard to earn. The environment for convertibles is becoming more attractive, with higher rates leading to higher yields being required when issued.

Convertible securities offer attractive yields with low duration while providing investors with the ability to participate in the potential for equity market returns. Advent Capital Management Partner and Senior Advisor, Barry Nelson, discusses opportunities in this sector.

We last looked at AVK around 8 months ago when a reader asked my thoughts. Since then, the fund's discount has opened up a bit further, but it still isn't appealing.

The Advent Claymore Convertible Securities & Income Fund - AVK - is a closed end fund focused on high yield and convertible securities. The high leverage the fund runs makes it volatile, with the 5-year standard deviation for AVK at 19.8.

AVK is an interesting convertible fund that also includes positions in high-yield bonds and some equities. The fund's distribution yield is an enticing 10.18%, but that could come under pressure through this rough market.

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have looked at other CEFs that invest in convertible securities; AVK's 7.5% yield looks attractive if it can be sustained. I continue my series on CEFs looking beyond the yield.

The convertibles sector had a tremendous 2020 on the back of a number of tailwinds such as outperformance in its sector tilts, high volatility, and falling rates. We take a look at the different options for investors in the sector across both open-end and closed-end funds.

Advent Convertible and Income Fund is a US stock , located in New york of Ny and trading under the symbol AVK

Advent Convertible and Income Fund stock price is $10.6188 today.

Yes, Advent Convertible and Income Fund is a publicly traded company.