AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE
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Insights
An analysis of AllianceBernstein Global High Income Fund's portfolio update indicates a diversified investment strategy with a significant allocation in non-investment grade corporate bonds, predominantly in the BB and B credit rating categories. This suggests a higher yield strategy, albeit with increased credit risk. The average coupon rate of 7.72% is notably high, reflecting the fund's focus on higher-yielding securities, which may appeal to investors seeking income in a potentially low-interest-rate environment.
The fund's effective duration of 3.85 years suggests moderate sensitivity to interest rate changes, which is a crucial consideration given the current economic climate where interest rates are a focal point for investors. The average bond price of 91.61 indicates that the fund's holdings are, on average, trading below par value, which may imply either market undervaluation or higher perceived risk.
The fund's leverage of 21.93% is a critical metric, as it can amplify both gains and losses. Stakeholders should be aware of the risks associated with leverage, especially in volatile markets. The total net assets of $930.02 million and a portfolio turnover of 40.00% reflect a moderately active management approach, which could result in higher transaction costs affecting the fund's performance.
From a market research perspective, the top 10 fixed-income holdings of the AllianceBernstein Global High Income Fund provide insight into the fund's sector allocation strategy, with a focus on industries such as communications, media, consumer non-cyclical and energy. The presence of emerging market sovereigns and collateralized loan obligations (CLOs) in the portfolio highlights the fund's exposure to both geographic and credit diversification, which can be a double-edged sword, offering both risk mitigation and potential for volatility.
The country breakdown showcases a heavy concentration in the United States, with a significant portion of investments also spread across various other countries, indicating a global investment approach. This geographic diversification can help spread risk but also exposes the fund to currency fluctuations and geopolitical risks. The fund's net currency exposure being predominantly in the US Dollar aligns with its US-centric focus.
As a credit analyst, the credit rating distribution within the AllianceBernstein Global High Income Fund's portfolio is of particular interest. The fund's substantial allocation to BB and B rated bonds suggests a strategy that tolerates higher credit risk in pursuit of yield. However, this also increases the potential for default, which investors must consider, especially during economic downturns.
The bonds by maturity section indicates a concentration in the 1 to 5 years and 5 to 10 years maturity buckets, which may reflect a balance between seeking higher yields and managing interest rate risk. The fund's average maturity of 6.31 years is consistent with a medium-term investment horizon, which may be suitable for investors with a similar risk appetite and time frame.
AllianceBernstein Global High Income Fund, Inc. | ||
Top 10 Fixed-Income Holdings | Portfolio % | |
1) | 1.09 % | |
2) CCO Holdings | 0.68 % | |
3) CCO Holdings | 0.64 % | |
4) Dominican Republic Intl Bond | 0.64 % | |
5) Sirius XM Radio, Inc. | 0.59 % | |
6) Royal Caribbean Cruises | 0.53 % | |
7) AMMC CLO 25 Ltd. | 0.53 % | |
8) Palmer Square CLO Ltd. | 0.42 % | |
9) Carnival Holdings Bermuda | 0.41 % | |
10) Altice France SA/ | 0.40 % | |
Investment Type | Portfolio % | |
Corporates - Non-Investment Grade | ||
Industrial | ||
Communications - Media | 7.18 % | |
Consumer Non-Cyclical | 6.83 % | |
Energy | 6.43 % | |
Capital Goods | 4.56 % | |
Services | 3.14 % | |
Basic | 3.09 % | |
Consumer Cyclical - Other | 3.09 % | |
Consumer Cyclical - Entertainment | 2.73 % | |
Consumer Cyclical - Automotive | 2.64 % | |
Communications - Telecommunications | 2.53 % | |
Consumer Cyclical - Retailers | 2.51 % | |
Technology | 2.51 % | |
Transportation - Services | 0.99 % | |
Transportation - Airlines | 0.91 % | |
Consumer Cyclical - Restaurants | 0.38 % | |
Other Industrial | 0.24 % | |
SUBTOTAL | 49.76 % | |
Credit Default Swaps | 19.45 % | |
Financial Institutions | ||
Finance | 2.40 % | |
REITs | 1.11 % | |
Brokerage | 1.06 % | |
Insurance | 0.52 % | |
Other Finance | 0.36 % | |
Banking | 0.19 % | |
SUBTOTAL | 5.64 % | |
Utility | ||
Electric | 0.51 % | |
Other Utility | 0.14 % | |
Natural Gas | 0.03 % | |
SUBTOTAL | 0.68 % | |
SUBTOTAL | 75.53 % | |
Corporates - Investment Grade | ||
Industrial | ||
Consumer Cyclical - Automotive | 2.23 % | |
Energy | 2.00 % | |
Consumer Non-Cyclical | 1.26 % | |
Basic | 0.94 % | |
Consumer Cyclical - Other | 0.83 % | |
Communications - Media | 0.62 % | |
Transportation - Airlines | 0.32 % | |
Consumer Cyclical - Retailers | 0.23 % | |
Technology | 0.23 % | |
Consumer Cyclical - Entertainment | 0.21 % | |
Services | 0.19 % | |
Communications - Telecommunications | 0.18 % | |
Other Industrial | 0.10 % | |
Capital Goods | 0.09 % | |
Transportation - Railroads | 0.04 % | |
Transportation - Services | 0.03 % | |
SUBTOTAL | 9.50 % | |
Financial Institutions | ||
Banking | 6.29 % | |
Finance | 1.14 % | |
Insurance | 1.12 % | |
REITs | 0.19 % | |
Brokerage | 0.12 % | |
SUBTOTAL | 8.86 % | |
Utility | ||
Electric | 0.59 % | |
SUBTOTAL | 0.59 % | |
SUBTOTAL | 18.95 % | |
Interest Rate Futures | 9.86 % | |
Emerging Markets - Corporate Bonds | ||
Industrial | ||
Basic | 1.18 % | |
Consumer Cyclical - Other | 1.10 % | |
Consumer Non-Cyclical | 0.78 % | |
Energy | 0.68 % | |
Capital Goods | 0.36 % | |
Technology | 0.20 % | |
Communications - Telecommunications | 0.13 % | |
Communications - Media | 0.10 % | |
Consumer Cyclical - Retailers | 0.04 % | |
Services | 0.04 % | |
Transportation - Services | 0.02 % | |
SUBTOTAL | 4.63 % | |
Utility | ||
Electric | 0.36 % | |
SUBTOTAL | 0.36 % | |
Financial Institutions | ||
Banking | 0.14 % | |
Other Finance | 0.02 % | |
SUBTOTAL | 0.16 % | |
SUBTOTAL | 5.15 % | |
Collateralized Loan Obligations | ||
CLO - Floating Rate | 4.31 % | |
SUBTOTAL | 4.31 % | |
Collateralized Mortgage Obligations | ||
Risk Share Floating Rate | 2.85 % | |
Non-Agency Fixed Rate | 0.35 % | |
Non-Agency Floating Rate | 0.30 % | |
Agency Fixed Rate | 0.27 % | |
SUBTOTAL | 3.77 % | |
Bank Loans | ||
Industrial | ||
Communications - Telecommunications | 0.72 % | |
Consumer Non-Cyclical | 0.55 % | |
Technology | 0.54 % | |
Energy | 0.38 % | |
Capital Goods | 0.32 % | |
Communications - Media | 0.24 % | |
Other Industrial | 0.23 % | |
Consumer Cyclical - Automotive | 0.09 % | |
Consumer Cyclical - Retailers | 0.05 % | |
Consumer Cyclical - Restaurants | 0.02 % | |
SUBTOTAL | 3.14 % | |
Financial Institutions | ||
Insurance | 0.17 % | |
Finance | 0.03 % | |
SUBTOTAL | 0.20 % | |
Utility | ||
Electric | 0.18 % | |
SUBTOTAL | 0.18 % | |
SUBTOTAL | 3.52 % | |
Emerging Markets - Sovereigns | ||
Emerging Markets - Sovereigns | 2.28 % | |
Credit Default Swaps | 0.27 % | |
SUBTOTAL | 2.55 % | |
Commercial Mortgage-Backed Securities | ||
Credit Default Swaps | 1.35 % | |
Non-Agency Fixed Rate CMBS | 0.49 % | |
Non-Agency Floating Rate CMBS | 0.03 % | |
SUBTOTAL | 1.87 % | |
1.68 % | ||
Total Return Swaps | 1.09 % | |
Quasi-Sovereigns | ||
Quasi-Sovereign Bonds | 0.81 % | |
SUBTOTAL | 0.81 % | |
Common Stocks | 0.49 % | |
Local Governments - US Municipal Bonds | 0.41 % | |
Inflation-Linked Securities | 0.21 % | |
EM Government Agencies | 0.12 % | |
Preferred Stocks | ||
Industrials | 0.10 % | |
SUBTOTAL | 0.10 % | |
Asset-Backed Securities | ||
Autos - Fixed Rate | 0.08 % | |
Other ABS - Floating Rate | 0.01 % | |
SUBTOTAL | 0.09 % | |
Forward Currency Exchange Contracts | ||
Currency Instruments | -0.12 % | |
SUBTOTAL | -0.12 % | |
Reverse Repurchase Agreements | -0.80 % | |
Cash & Cash Equivalents | ||
Funds and Investment Trusts | 0.95 % | |
Cash | 0.80 % | |
SUBTOTAL | 1.75 % | |
Derivative Offsets | ||
Futures Offsets | -9.80 % | |
Swap Offsets | -21.54 % | |
SUBTOTAL | -31.34 % | |
TOTAL | 100.00 % | |
Country Breakdown | Portfolio % | |
71.05 % | ||
3.98 % | ||
2.29 % | ||
2.14 % | ||
1.84 % | ||
1.33 % | ||
Luxembourg | 1.30 % | |
1.24 % | ||
1.06 % | ||
0.98 % | ||
0.97 % | ||
0.81 % | ||
0.80 % | ||
0.64 % | ||
0.59 % | ||
0.57 % | ||
0.56 % | ||
0.54 % | ||
0.53 % | ||
0.49 % | ||
0.47 % | ||
0.34 % | ||
0.32 % | ||
0.32 % | ||
0.30 % | ||
0.30 % | ||
0.29 % | ||
0.26 % | ||
0.24 % | ||
0.20 % | ||
0.20 % | ||
0.19 % | ||
0.18 % | ||
0.18 % | ||
0.16 % | ||
0.16 % | ||
0.15 % | ||
0.15 % | ||
0.14 % | ||
0.12 % | ||
0.11 % | ||
0.11 % | ||
0.10 % | ||
0.07 % | ||
Jersey ( | 0.06 % | |
0.05 % | ||
0.05 % | ||
0.04 % | ||
0.04 % | ||
0.02 % | ||
0.01 % | ||
Cash & Cash Equivalents | 0.96 % | |
Total Investments | 100.00 % | |
Net Currency Exposure Breakdown | Portfolio % | |
US Dollar | 100.12 % | |
Canadian Dollar | 0.19 % | |
Pound Sterling | 0.06 % | |
Japanese Yen | 0.01 % | |
South Korean Won | 0.01 % | |
Norwegian Krone | 0.01 % | |
South African Rand | 0.01 % | |
Swiss Franc | -0.01 % | |
Czech Koruna | -0.01 % | |
Peruvian Sol | -0.01 % | |
New Taiwan Dollar | -0.01 % | |
Colombian Peso | -0.14 % | |
Euro | -0.23 % | |
Total Net Assets | 100.00 % | |
Credit Rating | Portfolio % | |
AAA | 1.63 % | |
AA | 0.60 % | |
A | 2.70 % | |
BBB | 18.78 % | |
BB | 41.88 % | |
B | 22.45 % | |
CCC | 6.39 % | |
CC | 0.22 % | |
C | 0.11 % | |
D | 0.01 % | |
Not Rated | 3.26 % | |
Short Term Investments | 0.95 % | |
Reverse Repurchase Agreements | -0.80 % | |
N/A | 1.82 % | |
Total | 100.00 % | |
Bonds by Maturity | Portfolio % | |
Less than 1 Year | 4.18 % | |
1 To 5 Years | 54.95 % | |
5 To 10 Years | 33.48 % | |
10 To 20 Years | 3.47 % | |
20 To 30 Years | 2.26 % | |
More than 30 Years | 1.17 % | |
Other | 0.49 % | |
Total Net Assets | 100.00 % | |
Portfolio Statistics: | ||
Average Coupon: | 7.72 % | |
Average Bond Price: | 91.61 | |
Percentage of Leverage(based on gross assets): | ||
Bank Borrowing: | 0.00 % | |
Investment Operations:* | 21.93 % | |
Preferred Stock: | 0.00 % | |
Tender Option Bonds: | 0.00 % | |
VMTP Shares: | 0.00 % | |
Total Fund Leverage: | 21.93 % | |
Average Maturity: | 6.31 Years | |
Effective Duration: | 3.85 Years | |
Total Net Assets: | ||
Net Asset Value: | ||
Total Number of Holdings: | 1,384 | |
Portfolio Turnover: | 40.00 % |
* Investment Operations may include the use of certain portfolio management techniques such as credit default swaps, dollar rolls, negative cash, reverse repurchase agreements and when-issued securities.
The foregoing portfolio characteristics are as of the date indicated and can be expected to change. The Fund is a closed-end
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SOURCE AllianceBernstein Global High Income Fund, Inc.
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