Allspring Income Opportunities Fund Common Shares (EAD)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what the thing actually is: EAD is a closed-end fund holding below-investment-grade debt, high-yield securities, loans, and preferred stocks. That is a credit-sensitive, income-first vehicle, not a business with a durable moat. The manager can add value through credit selection and leverage, but the fund itself has little pricing power; its discount or premium to book can drive returns. At the close on 2026-10-13, the price was $5.95. FairStock calculations show a P/E of 8.75, P/B of 0.83, ROE of 9.56%, and ROCE of 3.93%. The dividend yield is 10.41%, and FairStock’s Graham Number is $10.50, implying a 43.33% margin of safety. That looks cheap on paper, but several quality checks are poor: Piotroski F-Score 1/9, Altman Z-Score 0.98, and a FairStock Score of 63/100. A D/E of 0.42 means leverage is amplifying both income and risk. Beta of 0.77 suggests lower market volatility, yet credit spreads can widen sharply. Growth data are unavailable, and FairStock's Lynch category is none because only 0 years of filed results are available, fewer than the three years needed. So there is no track record to classify. The 52-week range of $5.91-$6.97 puts the price near its low. This is a classic Graham situation: statistically cheap, but the high yield and weak financial-strength signals warn that the cheapness may reflect real credit and leverage risk. I would want evidence of durable distribution coverage and stable net asset value before trusting the discount.

In plain English: Allspring Income Opportunities Fund is a closed-end fund that invests mainly in lower-rated U.S. bonds, loans and preferred stocks to produce income. It offers a very high payout and trades below its book value, but its financial strength signals are mixed and it depends heavily on credit-market conditions. At $5.95, the price looks cheap compared with several value measures, though the weak internal scores mean it is not a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer