abrdn Asia-Pacific Income Fund yields 13.38% but faces payout sustainability concerns

The abrdn Asia-Pacific Income Fund (FAX) offers a high yield of 13.38%, focusing on investment-grade debt in Asia-Pacific and select emerging markets. Its portfolio is diversified with sovereign, quasi-sovereign, and local currency bonds, benefiting from recent foreign currency gains. However, despite stable distributions since 2019, the fund's net investment income and realized gains have not fully covered payouts, raising concerns about the sustainability of its income. The ETF trades at a 6.39% discount to its net asset value, and investors should watch upcoming financial reports for updates on distribution coverage.