I'm about to butcher some of the facts but my understanding is that JEPI invests 80% of its assets into S&P 500 dividend paying stocks, while the other 20% are used for covered calls. I know I'm leaving out a few of the fancy transactions they're doing in the 20% but I feel that's a fairly accurate description.
My question in relation to the title is how or even will higher interest rates when the Federal Reserve raises them effect JEPI's dividend payment? Will this increase/decrease the cost of JEPI's covered calls or have a net zero effect (as in it will raise the cost but also raise the profit, or have no impact at all)?
Submitted August 14, 2021 at 04:05AM by matty1monopoly https://ift.tt/3kbnXnl
