Q: After the run up of CEU, do you think a switch to SOBO makes sense? I'm looking for long term 8-10% total income annually.
5i Research Answer:
We think this move could make sense. SOBO should be less volatile than CEU and the latter has had such strong momentum over the last year it may enter a consolidation period in the near future. SOBO also offers a higher yield which could help achieve the income goals here as well. SOBO current yield is 7.8%, so very little gains would be needed to achieve the stated goals.