Short Interest in First Trust High Yield Opportunities Fund Soars

The First Trust High Yield Opportunities 2027 Term Fund (NYSE: FTHY) experienced a notable increase in short interest during January 2023. As of January 15, the fund’s short interest reached a total of 17,958 shares, marking a significant 114.4% rise from the previous total of 8,376 shares recorded on December 31, 2022. With an average daily trading volume of 80,379 shares, the current days-to-cover ratio stands at 0.2 days.

Several institutional investors have recently adjusted their holdings in the First Trust High Yield Opportunities 2027 Term Fund. Notably, CX Institutional acquired a new position during the third quarter, investing approximately $28,000. Meanwhile, Colonial Trust Advisors significantly increased its stake by 300% in the same quarter, bringing its total ownership to 3,000 shares valued at $43,000 after purchasing an additional 2,250 shares.

In a further demonstration of growing interest, Northwestern Mutual Wealth Management Co. raised its holdings by a staggering 466% during the second quarter. The firm now owns 6,073 shares valued at $90,000 following an acquisition of 5,000 shares. Additionally, Camelot Portfolios LLC entered the market with a new position valued at $98,000 in the fourth quarter, while Ameritas Advisory Services LLC also purchased a new stake worth $110,000 during the second quarter.

Current Trading Performance

On January 20, 2023, shares of the First Trust High Yield Opportunities 2027 Term Fund traded up by $0.01, reaching a price of $14.19. The trading volume for the day was 38,491 shares, in contrast to the fund’s average volume of 87,680 shares. The fund has a 50-day simple moving average of $14.09 and a 200-day simple moving average of $14.32. Over the past year, the fund has recorded a low of $12.84 and a high of $14.98.

Fund Overview and Objectives

The First Trust High Yield Opportunities 2027 Term Fund, classified as a closed-end management investment company, is designed as a diversified term fund set to terminate in 2027. The fund aims to provide shareholders with high current income, along with potential capital appreciation through a carefully managed portfolio of fixed-income securities. Under the management of First Trust Advisors L.P., a subsidiary of First Trust, the fund employs professional research and risk management strategies to curate its holdings, primarily focusing on U.S. securities.

Investors are encouraged to stay informed about market trends and changes in institutional trading as the First Trust High Yield Opportunities 2027 Term Fund continues to evolve.