Guggenheim Strategic Opportunities Fund (GOF)

Guggenheim Strategic Opportunities Fund (GOF) dropped by 9.12% from $12.28 to $11.16 in the trading on Tuesday October 17, 2023. The reason why GOF down today is due to the concerns about the sustainability of its current monthly distribution.

• The high-yield fund's NAV has declined from $12.32 per share in September to $11.66, putting its current monthly distribution of $0.1821 (annualized to $2.19) at nearly 19% of its NAV.
• This distribution is unsustainable unless the fund's NAV reverses its trend, which is unlikely given its holdings of high-yield corporate bonds, bank loans, and asset-backed securities.
• Moreover, the fund has financed its distributions by returning capital and taking on leverage, while its net investment income has come under pressure.