Fitch puts four Nuveen preferreds on watch

Fitch Ratings said it placed on rating watch negative the AA long-term ratings assigned to the term preferred shares issued By Nuveen Floating Rate Income Fund, Nuveen Floating Rate Income Opportunity Fund and Nuveen Senior Income Fund.

Fitch also placed on RWN the AA long-term ratings assigned to the taxable fund preferred shares issued by Nuveen Short Duration Credit Opportunities Fund.

The four loan closed-end funds are managed by Nuveen Fund Advisors, LLC and sub-advised by Symphony Asset Management LLC.

“The RWNs reflect recent extreme market volatility and reduced asset liquidity, which have quickly eroded asset coverage cushions for CEFs and challenged fund managers' ability to deleverage. While the Nuveen CEFs were able to manage leverage and asset coverage in line with required guidelines specified in transaction documentation, risks remain with regards to the funds' ability to sell assets at sufficient valuations at stress levels corresponding to the current high ratings,” Fitch said in a press release.

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