Bond Panic? Great! This 13% Payer Is on Sale (for 91 Cents on the Dollar)

In one corner of the income market, a "rubber band" is stretched about as far as it can go. When it snaps back, I expect it to catapult the prices of a select group of 10%+ payers much higher from here. Those 10%+ payers are bond-focused closed-end funds (CEFs). This latest bond panic has blown out their discounts to levels not seen in four years. That's dropped their prices. And because yields and prices move in opposite directions, a buy today gets us "starter yields" up to 13% here. That's our window--it's exactly where our corporate-bond CEFs are now. Here's the thing, though. Those growing yields are piling pressure on these funds' discounts.