MassMutual new deal: C$750M WNG 7Y FABN +90

MassMutual new deal: C$750M WNG 7Y FABN +90

Herzfeld Credit Income Fund, Inc. (formerly known as Herzfeld Caribbean Basin Fund, Inc.) has announced a significant rebranding and strategic shift. Effective July 7, 2025, the Fund will trade under the new ticker symbol "HERZ" on NASDAQ and has officially changed its name to Herzfeld Credit Income Fund, Inc. [1]

The rebranding follows a stockholder-approved shift in investment strategy, transitioning to a "CLO Equity Strategy." This new strategy focuses on generating total returns and high current income by investing primarily in equity and junior debt tranches of collateralized loan obligations (CLOs). CLOs are portfolios of secured loans, primarily below investment grade, from various underlying borrowers across industries [2].

The Fund’s primary investment objective is a total return strategy with a secondary objective of generating high current income for stockholders. The Fund will invest in equity and junior debt tranches of CLOs, which consist primarily of below investment grade U.S. senior secured loans [2].

The Fund's advisor, Thomas J. Herzfeld Advisors, Inc., an SEC registered investment advisor founded in 1984, specializes in investment analysis and account management in closed-end funds [2].

The Herzfeld Credit Income Fund, Inc. trades at a discount from its net asset value, which could signal a lack of confidence from the market regarding its future performance. Investors are advised to carefully consider the Fund’s investment objective, risks, charges, and expenses. Please read the Fund’s disclosure documents before investing [2].

The Fund's insiders have been active in purchasing shares over the past six months, with the President, Erik Mervin Herzfeld, and other key executives making significant purchases. Additionally, several institutional investors have added shares to their portfolios, indicating potential interest in the Fund's new strategy [2].

The Herzfeld Credit Income Fund, Inc. is poised to attract investors seeking income-oriented investments, given its focus on CLOs. However, the significant risks associated with high yield investments and credit spread risk may deter conservative investors. As with any investment, thorough research and consideration of the Fund's disclosure documents are essential.

References:
[1] https://ca.finance.yahoo.com/quote/MRMZX/
[2] https://www.nasdaq.com/articles/herzfeld-caribbean-basin-fund-inc-renamed-herzfeld-credit-income-fund-inc-new-investment