The Pimco Income Opportunity Fund  (PKO - Get Report)  currently trades at a 5% discount to its net asset value, even though it has traded at a 1% premium on average over the past five years. Jim Robinson, portfolio manager of the Robinson Opportunistic Income Fund, said he does not expect that discount to last too long.
 
"Because of Pimco's superior brand and fund management, their funds have historically traded at premiums and this one trades at a discount," said Robinson about the PKO, which invests in high yield taxable bonds and has a distribution yield of 11%.
 
Robinson is also extremely bullish on the Allianz Convertible & Income Fund  (NCV - Get Report) , which invests in convertible bonds. The NCV sports a distribution yield of 14% and is currently trading at a 6% discount with the 5-year average discount actually being a premium of 5.4%.
 
The Guggenheim Strategic Opportunities Fund  (GOF - Get Report)  is a multi-strategy fund that invests in high yield bonds and senior bank loans.  Robinson is a big fan of the fund and its distribution yield of 12.8%. The fund is currently trading at a 1.5% premium to its net asset value. Over the previous five years the fund has traded at an average premium of 6%.
 
"The GOF has 33% leverage, but we can hedge out most of the interest rate risk," said Robinson.
 
Finally, Robinson is positive on the Nuveen Floating Rate Income Opportunity Fund  (JRO - Get Report) .  The JRO invests primarily in syndicated senior bank loans.  It boasts a distribution yield of 7.7%.  The fund is currently trading at a 9.4% discount to its underlying net asset value with its 5-year average discount being 3.1%.
 
"Senior bank loans rank at the top of the capital structure so there is less risk there and there is less exposure to energy in the JRO," said Robinson.