AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE
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Insights
An examination of AllianceBernstein Global High Income Fund's portfolio update reveals a diversified mix of fixed-income assets, with a substantial allocation to non-investment grade corporates and credit default swaps. The average coupon rate of 7.50% suggests a higher-yielding portfolio, potentially attractive to income-seeking investors, but also indicative of higher risk. The average bond price at 94.24 points to a market that is trading these bonds at a discount, possibly reflecting credit risk or market adjustments.
The fund's effective duration of 3.69 years indicates moderate interest rate risk, meaning the portfolio's value is somewhat sensitive to changes in interest rates. This is relevant in the context of the current interest rate environment, where central banks may adjust rates to manage inflation. The total net assets of $962.97 million and a NAV of $11.17 provide a snapshot of the fund's size and per-share value, which are key metrics for investors.
With a portfolio turnover of 40.00%, the fund exhibits a moderate level of trading activity, which could imply a balance between seeking opportunities in changing market conditions and maintaining a stable portfolio composition. This level of turnover might impact transaction costs and tax efficiency for investors.
The country breakdown of AllianceBernstein Global High Income Fund's portfolio indicates a heavy concentration in the United States (70.68%), which could reflect both a home bias and a strategic positioning given the size and liquidity of the US fixed-income market. However, this concentration also exposes the fund to region-specific economic and political risks.
The credit rating distribution shows a significant portion of the portfolio invested in BB (41.01%) and B (23.65%) rated securities, which are considered speculative grade. This aligns with the fund's high-income strategy but also increases the credit risk. The presence of CCC-rated bonds (6.50%) further underscores the fund's aggressive risk profile.
The leverage percentage of 18.29% based on gross assets is a critical metric, as it indicates the fund is employing leverage to potentially enhance returns. While this can be beneficial in favorable market conditions, it also amplifies losses during downturns, adding an additional layer of risk for investors to consider.
The fund's exposure to credit default swaps (CDS) at 16.19% is notable, as CDS can serve as a hedge against credit risk or as a speculative tool. The use of CDS should be monitored closely as it can significantly affect the risk profile of the portfolio. The collateralized loan obligations (CLOs) at 4.21% and collateralized mortgage obligations (CMOs) at 3.31% reflect an investment in structured credit, which can offer diversification benefits but also carry complexity and liquidity risk.
The emerging markets exposure (5.12% in corporate bonds and 2.57% in sovereigns) introduces additional geopolitical and currency risks, although it may provide higher yields and diversification away from developed markets. The fund's position in emerging market sovereigns is particularly sensitive to changes in investor sentiment and can be volatile.
The net currency exposure shows a predominant position in US dollars (100.26%), suggesting minimal direct currency risk for US-based investors. However, any investments in non-dollar denominated assets could be affected by currency fluctuations, impacting returns.
AllianceBernstein Global High Income Fund, Inc. | ||
Top 10 Fixed-Income Holdings | Portfolio % | |
1) | 1.07 % | |
2) CCO Holdings | 0.69 % | |
3) CCO Holdings | 0.65 % | |
4) Dominican Republic Intl Bond | 0.62 % | |
5) Sirius XM Radio, Inc. | 0.59 % | |
6) Royal Caribbean Cruises | 0.53 % | |
7) AMMC CLO 25 Ltd. | 0.51 % | |
8) Palmer Square CLO Ltd. | 0.42 % | |
9) Altice France SA/ | 0.42 % | |
10) Carnival Holdings Bermuda | 0.40 % | |
Investment Type | Portfolio % | |
Corporates - Non-Investment Grade | ||
Industrial | ||
Communications - Media | 7.28 % | |
Consumer Non-Cyclical | 6.68 % | |
Energy | 6.36 % | |
Capital Goods | 4.47 % | |
Services | 3.18 % | |
Basic | 3.17 % | |
Consumer Cyclical - Other | 3.02 % | |
Consumer Cyclical - Entertainment | 2.70 % | |
Communications - Telecommunications | 2.68 % | |
Technology | 2.63 % | |
Consumer Cyclical - Retailers | 2.48 % | |
Consumer Cyclical - Automotive | 2.46 % | |
Transportation - Services | 1.07 % | |
Transportation - Airlines | 0.91 % | |
Consumer Cyclical - Restaurants | 0.38 % | |
Other Industrial | 0.31 % | |
SUBTOTAL | 49.78 % | |
Credit Default Swaps | 16.19 % | |
Financial Institutions | ||
Finance | 2.43 % | |
REITs | 1.13 % | |
Brokerage | 0.95 % | |
Insurance | 0.51 % | |
Other Finance | 0.35 % | |
Banking | 0.28 % | |
SUBTOTAL | 5.65 % | |
Utility | ||
Electric | 0.45 % | |
Other Utility | 0.15 % | |
Natural Gas | 0.03 % | |
SUBTOTAL | 0.63 % | |
SUBTOTAL | 72.25 % | |
Corporates - Investment Grade | ||
Industrial | ||
Consumer Cyclical - Automotive | 2.24 % | |
Energy | 2.08 % | |
Consumer Non-Cyclical | 1.26 % | |
Basic | 1.04 % | |
Consumer Cyclical - Other | 0.86 % | |
Communications - Media | 0.65 % | |
Transportation - Airlines | 0.30 % | |
Consumer Cyclical - Retailers | 0.23 % | |
Consumer Cyclical - Entertainment | 0.21 % | |
Services | 0.19 % | |
Communications - Telecommunications | 0.18 % | |
Capital Goods | 0.14 % | |
Technology | 0.13 % | |
Other Industrial | 0.10 % | |
Transportation - Services | 0.10 % | |
Transportation - Railroads | 0.04 % | |
SUBTOTAL | 9.75 % | |
Financial Institutions | ||
Banking | 6.26 % | |
Insurance | 1.17 % | |
Finance | 1.13 % | |
REITs | 0.19 % | |
Brokerage | 0.11 % | |
SUBTOTAL | 8.86 % | |
Utility | ||
Electric | 0.59 % | |
SUBTOTAL | 0.59 % | |
SUBTOTAL | 19.20 % | |
Interest Rate Futures | 9.63 % | |
Emerging Markets - Corporate Bonds | ||
Industrial | ||
Basic | 1.13 % | |
Consumer Cyclical - Other | 1.08 % | |
Consumer Non-Cyclical | 0.83 % | |
Energy | 0.67 % | |
Capital Goods | 0.26 % | |
Technology | 0.20 % | |
Communications - Media | 0.15 % | |
Communications - Telecommunications | 0.13 % | |
Consumer Cyclical - Retailers | 0.09 % | |
Services | 0.04 % | |
Transportation - Services | 0.02 % | |
SUBTOTAL | 4.60 % | |
Utility | ||
Electric | 0.36 % | |
SUBTOTAL | 0.36 % | |
Financial Institutions | ||
Banking | 0.14 % | |
Other Finance | 0.02 % | |
SUBTOTAL | 0.16 % | |
SUBTOTAL | 5.12 % | |
Collateralized Loan Obligations | ||
CLO - Floating Rate | 4.21 % | |
SUBTOTAL | 4.21 % | |
Bank Loans | ||
Industrial | ||
Communications - Telecommunications | 0.68 % | |
Technology | 0.68 % | |
Consumer Non-Cyclical | 0.54 % | |
Energy | 0.37 % | |
Capital Goods | 0.32 % | |
Communications - Media | 0.24 % | |
Other Industrial | 0.22 % | |
Consumer Cyclical - Automotive | 0.09 % | |
Consumer Cyclical - Retailers | 0.05 % | |
Consumer Cyclical - Restaurants | 0.02 % | |
SUBTOTAL | 3.21 % | |
Financial Institutions | ||
Insurance | 0.17 % | |
Finance | 0.02 % | |
SUBTOTAL | 0.19 % | |
Utility | ||
Electric | 0.18 % | |
SUBTOTAL | 0.18 % | |
SUBTOTAL | 3.58 % | |
Collateralized Mortgage Obligations | ||
Risk Share Floating Rate | 2.42 % | |
Non-Agency Fixed Rate | 0.34 % | |
Non-Agency Floating Rate | 0.30 % | |
Agency Fixed Rate | 0.25 % | |
SUBTOTAL | 3.31 % | |
Emerging Markets - Sovereigns | ||
Emerging Markets - Sovereigns | 2.30 % | |
Credit Default Swaps | 0.27 % | |
SUBTOTAL | 2.57 % | |
Commercial Mortgage-Backed Securities | ||
Credit Default Swaps | 1.30 % | |
Non-Agency Fixed Rate CMBS | 0.46 % | |
Non-Agency Floating Rate CMBS | 0.03 % | |
SUBTOTAL | 1.79 % | |
1.67 % | ||
Total Return Swaps | 1.12 % | |
Quasi-Sovereigns | ||
Quasi-Sovereign Bonds | 0.82 % | |
SUBTOTAL | 0.82 % | |
Common Stocks | 0.50 % | |
Local Governments - US Municipal Bonds | 0.42 % | |
Inflation-Linked Securities | 0.22 % | |
EM Government Agencies | 0.13 % | |
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 | -0.20 % | |
SUBTOTAL | -0.20 % | |
Reverse Repurchase Agreements | -0.84 % | |
Cash & Cash Equivalents | ||
Funds and Investment Trusts | 1.33 % | |
Cash | 0.22 % | |
SUBTOTAL | 1.55 % | |
Derivative Offsets | ||
Futures Offsets | -9.34 % | |
Swap Offsets | -17.90 % | |
SUBTOTAL | -27.24 % | |
TOTAL | 100.00 % | |
Country Breakdown | Portfolio % | |
70.68 % | ||
3.79 % | ||
2.36 % | ||
2.13 % | ||
1.86 % | ||
1.35 % | ||
Luxembourg | 1.31 % | |
1.28 % | ||
1.09 % | ||
1.00 % | ||
0.98 % | ||
0.80 % | ||
0.78 % | ||
0.63 % | ||
0.62 % | ||
0.60 % | ||
0.57 % | ||
0.53 % | ||
0.52 % | ||
0.49 % | ||
0.47 % | ||
0.33 % | ||
0.32 % | ||
0.31 % | ||
0.30 % | ||
0.30 % | ||
0.30 % | ||
0.29 % | ||
0.28 % | ||
0.20 % | ||
0.19 % | ||
0.18 % | ||
0.18 % | ||
0.17 % | ||
0.17 % | ||
0.16 % | ||
0.16 % | ||
0.15 % | ||
0.14 % | ||
0.12 % | ||
0.11 % | ||
0.10 % | ||
0.06 % | ||
Jersey ( | 0.06 % | |
0.05 % | ||
0.05 % | ||
0.05 % | ||
0.04 % | ||
0.02 % | ||
0.02 % | ||
0.01 % | ||
Cash & Cash Equivalents | 1.34 % | |
Total Investments | 100.00 % | |
Net Currency Exposure Breakdown | Portfolio % | |
US Dollar | 100.26 % | |
Canadian Dollar | 0.19 % | |
Pound Sterling | 0.07 % | |
Indonesian Rupiah | 0.01 % | |
Indian Rupee | 0.01 % | |
Japanese Yen | 0.01 % | |
Norwegian Krone | 0.01 % | |
Swiss Franc | -0.01 % | |
Czech Koruna | -0.01 % | |
Hungarian Forint | -0.01 % | |
Peruvian Sol | -0.01 % | |
Swedish Krona | -0.01 % | |
Colombian Peso | -0.14 % | |
Euro | -0.37 % | |
Total Net Assets | 100.00 % | |
Credit Rating | Portfolio % | |
AAA | 1.77 % | |
AA | 0.59 % | |
A | 2.58 % | |
BBB | 18.79 % | |
BB | 41.01 % | |
B | 23.65 % | |
CCC | 6.50 % | |
CC | 0.17 % | |
C | 0.11 % | |
D | 0.01 % | |
Not Rated | 3.00 % | |
Short Term Investments | 1.33 % | |
Reverse Repurchase Agreements | -0.84 % | |
N/A | 1.33 % | |
Total | 100.00 % | |
Bonds by Maturity | Portfolio % | |
Less than 1 Year | 3.10 % | |
1 To 5 Years | 58.59 % | |
5 To 10 Years | 31.69 % | |
10 To 20 Years | 3.06 % | |
20 To 30 Years | 0.87 % | |
More than 30 Years | 2.19 % | |
Other | 0.50 % | |
Total Net Assets | 100.00 % | |
Portfolio Statistics: | ||
Average Coupon: | 7.50 % | |
Average Bond Price: | 94.24 | |
Percentage of Leverage(based on gross assets): | ||
Bank Borrowing: | 0.00 % | |
Investment Operations:* | 18.29 % | |
Preferred Stock: | 0.00 % | |
Tender Option Bonds: | 0.00 % | |
VMTP Shares: | 0.00 % | |
Total Fund Leverage: | 18.29 % | |
Average Maturity: | 6.03 Years | |
Effective Duration: | 3.69 Years | |
Total Net Assets: | ||
Net Asset Value: | ||
Total Number of Holdings: | 1,387 | |
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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