According to the Wall Street Journal, approximately 300 closed-end bond funds are trading at a premium (selling for more than their net asset value). This figure represents about half of all closed-end funds of this type. The article states that these funds are becoming more popular because their investments in long-term bond funds produce yield in our current low-interest rate environment. In contrast, the average closed-end stock fund still trades at a discount – about 6% below net asset value – and 100 stock funds trade at a discount of 8% or greater.
The article is available here (paid subscription required).