Dividend Coverage ShortfallNet investment income remaining below the dividend level creates a coverage gap that could pressure distributions if supplementary income sources falter.
High-yield Risk PerceptionAn unusually high stated yield can signal elevated portfolio risk and may deter risk-averse investors, increasing sensitivity of the share price to negative developments.
Reliance On Spillover IncomeHeavy dependence on spillover income to offset the shortfall increases vulnerability to market swings and could necessitate drawing on liquidity to sustain payouts.