St. Petersburg, FL – The DoubleLine Income Solutions Fund (NYSE:DSL) offers income-seeking investors a way to achieve high current income from their assets. This closed-end fund provides a 10.21% yield and monthly distributions for rapid compounding. However, primarily investing in bonds means potential investors may want to hold their shares in a tax-advantaged account to avoid surprises at tax time. While bonds may not protect against inflation, the high yield can help offset this concern as long as inflation remains low.

The fund’s 10.21% yield is slightly below its peers in the fixed-income taxable global income category. Despite this, the fund’s yield is still attractive compared to other offerings. However, the DoubleLine Income Solutions Fund has been one of the worst-performing funds in its peer group over the past five years. This underperformance raises questions about the fund’s ability to deliver returns compared to its competitors.

Over the past few months, the bond market has experienced volatility, with investors uncertain about monetary policy. This uncertainty shifted in July, leading to increased optimism and bond price appreciation. While the DoubleLine Income Solutions Fund has likely seen positive returns since the previous discussion, the fund’s performance may have been volatile compared to the bond index.

The fund’s strategy focuses on investing in income-producing assets, primarily debt securities, with a small percentage allocated to common stocks. However, the fund’s investment in distressed or bankrupt companies suggests limited potential for long-term capital gains. The fund’s leverage ratio is relatively low compared to its peers, indicating a more conservative approach to borrowing.

The DoubleLine Income Solutions Fund aims to provide investors with high current income through monthly distributions. While the fund has maintained its distribution over the years, it did reduce payouts in late 2020. The fund’s ability to cover distributions in the latest financial report suggests a reasonably safe distribution for investors.

Currently trading at a premium to net asset value, the fund may not offer significant upside potential given the current bond market conditions. While the fund is a decent income play, investors may want to consider equity closed-end funds for better potential returns. Ultimately, the decision to hold or sell the fund depends on individual investment goals and risk tolerance.