First Trust High Yield Opportunities 2027 Term Fund — Cyborg Score 6/10
Solid
Closed-end high-yield debt funds
Strategic Profile
As a term-structured closed-end fund with a stated 2027 maturity horizon, FTHY employs an opportunistic allocation strategy across both U.S. and non-U.S. corporate high-yield securities. The fund is actively managed by First Trust Advisors' Leveraged Finance Investment Team and offers investors monthly dividend distributions, positioning itself as a tactical income vehicle in volatile credit environments.
Cyborg Score Rationale
FTHY operates in a mature, established closed-end fund structure with a focused mandate on high-yield securities. Strong professional management and regular distributions provide investor appeal, but the fund's performance is inherently tied to credit cycle dynamics and subordinated debt risk. The 2027 term structure also creates maturity-related timing considerations.
Top Insights
Fund launched June 2020 with $665 million in initial capital and structure designed to provide tactical high-yield allocation
Closed-end fund structure with monthly dividend distributions ($0.125 per share as of June 2026), providing regular income to shareholders
Leveraged Finance Investment Team manages both FTHY and First Trust Senior Floating Rate Income Fund II (FCT), indicating shared institutional expertise
As of June 25, 2026, market capitalization approximately $499 million with net asset value of $9.75 per share (as of October 2021), trading at modest discount reflecting closed-end fund dynamics
Named Competitors
Senior Floating Rate Income Fund II — Closed-end fund investing in senior secured floating-rate corporate loans