Core Thesis - Corebridge Financial, Inc. (CRGB) is viewed positively due to its strong market position as a major U.S. provider of life insurance and retirement solutions, with a share price of $32.42 as of October 7th and attractive valuation metrics, including a trailing P/E of 8.64 and a forward P/E of 5.99 [1][2] Business Overview - CRGB was spun out of AIG in 2022 and operates four main business lines: individual retirement (69% of operating income), group retirement (21%), life insurance (13%), and institutional markets (14%) [2] - The company generates income by selling future income streams and death benefits, primarily investing premiums in fixed-income securities, resulting in a net investment income of $12.2 billion on a $400 billion balance sheet in 2024, yielding a spread of approximately 3% [2] Financial Performance - Total premiums amounted to $4.6 billion, with additional fees of $3.0 billion, against policy benefits of $6.6 billion, credited interest of $5.2 billion, and overhead of $2.1 billion, leading to a net income of $2.2 billion and a 10% return on adjusted book value of $22.2 billion [3] - The company has repurchased $1.7 billion of shares, representing about 10% of its current market cap of $17.5 billion, while the stock trades at 8x earnings and 0.88x book value, partly due to residual AIG overhang [3] Capital Management and Strategy - CRGB has transferred $23.8 billion of liabilities to Fortitude Re in Bermuda, which has allowed for increased capital availability for dividends and buybacks while retaining assets managed by Blackstone and BlackRock [4] - The investment portfolio includes $179.7 billion in bonds, $54.3 billion in mortgages and loans, and $22.1 billion in private credit, with plans to scale Blackstone-managed assets to $92.5 billion by 2027, indicating a balance between growth and associated risks [4] Market Sentiment - The bullish sentiment on CRGB is reinforced by its ongoing $2 billion buyback program and favorable demographics, supporting projected long-term EPS growth of 10-15% [3][5] - However, the strategy of increasing exposure to private credit and offshore reinsurance introduces potential leverage, counterparty, and default risks [4][5]

Core Insights - Closed-end funds (CEFs) are currently seen as undervalued investment opportunities, often trading at discounts to their net asset values (NAVs), making them attractive for contrarian investors [2][3] High Yield CEFs: Eaton Vance Tax-Advantaged Dividend Income Fund (EVT) - EVT invests in both common and preferred stocks, focusing on qualified dividends that are taxed at favorable long-term capital gains rates [4] - The fund currently yields 8%, significantly higher than the typical 2% yield of standard dividend funds, partly due to a leverage of about 20% of assets [6][7] - EVT trades at an 8% discount to NAV, wider than its historical average of 5% [9] High Yield CEFs: Eaton Vance Tax-Managed Buy-Write Opportunities (ETV) - ETV employs a covered call strategy, holding a portfolio of 150 large-cap stocks and generating income through selling covered calls on major market indexes [11] - The fund trades at approximately 94 cents on the dollar, providing a cost-effective way to gain exposure to its monthly distributions [12] High Yield CEFs: BlackRock Enhanced Global Dividend Trust (BOE) - BOE has a diversified portfolio of about 50 stocks, split between U.S. and international equities, focusing on blue-chip companies [13][15] - The fund yields over 8%, supported by a covered call strategy, and currently trades at an 8.7% discount to NAV, which is less than its long-term average of 11% [16] High Yield CEFs: BlackRock Resources & Commodities Strategy Trust (BCX) - BCX invests in stocks of commodity and natural resources companies, maintaining a portfolio of 45 companies across energy and materials sectors [17] - The fund is currently available at a 6% discount, which is less attractive compared to its long-term average discount of 10% [18] High Yield CEFs: ClearBridge Energy Midstream Opportunity Fund (EMO) - EMO focuses on midstream energy companies, yielding nearly 10% and utilizing high leverage of about 30% to enhance returns [19][21] - The fund has outperformed its benchmark, the Alerian MLP Index, since 2023, but trades at a premium compared to its historical average discount of 15% [23]