HCD is an ETF that owns high yield/distressed corporate bonds and syndicated bank loans.
Per ETFconnect, on August 30th HCD's NAV was $14.08, an 11% discount to the stock's $12.48 closing price that day.
http://www.etfconnect.com/select/fun...sp?MFID=179546
This past Friday, HCD closed at $11.42. Unless they marked down the debt in the portfolio, the discount to NAV is now 18.9%. Without knowing what's in the portfolio, on the surface that appears to be a nice margin of safety.
In addition, it recently paid a quarterly dividend of $0.2625. Assuming that's sustainable, HCD provides an annual current yield of over 9%. Assuming the current discount to NAV is 19%, and it goes away over the next year, the potential total return is 28%. And if the portfolio gets marked up, the NAV goes up, and the potential return is even larger.
If interested, poke around their website. The last conference call transcript was pretty interesting reading:
http://www.highlandhcd.com/Literature.aspx