The Nuveen Preferred and Income 2022 Term Fund (JPT) has a lot going for it though it is often ignored by investors. The fund’s most attractive feature is its term structure which offers some discount control and visibility. It also offers a potential performance tailwind relative to the NAV into the termination in 2022. The fund has been offering some great opportunities with its PTN yield moving from below zero to around 2%. At current levels, it is probably the most attractive preferred fund out there – combining the best features of closed-end and open-end funds while offering the highest total yield in the sector despite its fairly low level of leverage which allows its volatility to be subdued. Highest yield / best risk control is a rare combo!
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