Today’s Talk Your Book is brought to you by Federated Hermes:
On today’s show, we discuss:
- The 30 year Treasury breaking out to highs not seen since 2007
- The case for moving out the curve to capture higher yield potential
- Using option call spreads and return of capital for tax-efficient income potential
- How PAYR uses options on a high dividend yield portfolio to generate income potential
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https://podcasts.thecompoundnews.com/show/animalspirits/
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Nothing in this blog constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by Ritholtz Wealth Management or its employees.
The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, received compensation from the sponsor of this advertisement. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investing in speculative securities involves the risk of loss. Nothing on this website should be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product.
Disclosures from Federated Hermes:
Before investing, carefully consider the fund’s investment objectives, risks, charges, and expenses. Read this and more information in the Prospectus or Summary Prospectus at FederatedHermes.com.
Federated Securities Corp. is the distributor of the Federated Hermes funds.
Investments are subject to risk and may lose value.
Views are for informational purposes only and do not constitute tax or investment advice.
Federated Hermes Enhanced Income Fund (PAYR) seeks to distribute current monthly income. Distributions may vary widely and may not be paid every month.
ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates the current NAV per share. NAVs are calculated using prices as of the end of regular trading on the New York Stock Exchange (normally 4:00pm Eastern Time). Recent information, including information about the fund’s NAV, market price, premiums and discounts, and bid-ask spreads, is included on the fund’s website at FederatedHermes.com/us.
A rise in interest rates can cause a decline in bond prices.
There are no guarantees that dividend-paying stocks will continue to pay dividends and they may not have the same capital appreciation potential as other stocks.
A return of capital distribution will reduce the shareholder’s cost basis and result in a higher capital gain or lower capital loss when fund shares are sold.
Investing in options involves risks different from, or possibly greater than investing in traditional investments.
Stocks may decline in value because of an increase in interest rates or changes in the market.
The yield curve compares yields according to maturity. Treasury yields are quoted for illustrative purposes only.
