### Key Points
– FSCO is a closed-end fund that invests in senior secured floating rate loans.
– The fund has been paying a steady dividend of 10% per year.
– FSCO is a good option for investors who are looking for a high yield and a low level of risk.
### Overview
FSCO is a closed-end fund that invests in senior secured floating rate loans. These loans are made to companies that have a good credit rating and are able to repay their debts. FSCO’s portfolio is diversified across a variety of industries and sectors, which helps to reduce risk.
The fund has been paying a steady dividend of 10% per year since its inception in 2007. This dividend is paid monthly, which provides investors with a steady stream of income.
### Benefits of Investing in FSCO
There are several benefits to investing in FSCO, including:
– **High yield:** FSCO offers a high yield of 10% per year. This is significantly higher than the yield on most other fixed income investments.
– **Low risk:** FSCO invests in senior secured floating rate loans, which are a relatively low-risk investment. These loans are made to companies that have a good credit rating and are able to repay their debts.
– **Monthly dividends:** FSCO pays dividends monthly, which provides investors with a steady stream of income.
– **Diversification:** FSCO’s portfolio is diversified across a variety of industries and sectors, which helps to reduce risk.
### Risks of Investing in FSCO
As with any investment, there are some risks associated with investing in FSCO, including:
– **Interest rate risk:** FSCO invests in floating rate loans, which means that the interest rates on these loans will fluctuate with the market. If interest rates rise, the value of FSCO’s portfolio could decline.
– **Credit risk:** FSCO invests in senior secured floating rate loans, but there is still some risk that the companies that have borrowed these loans will default on their debts. If this happens, FSCO’s portfolio could decline in value.
– **Market risk:** The value of FSCO’s portfolio could decline if the stock market declines.
### Conclusion
FSCO is a closed-end fund that offers a high yield of 10% per year and a low level of risk. The fund is a good option for investors who are looking for a steady stream of income and a low level of risk.
Kind regards S. Sing.
