I have been investing in securities since the 1990s, but within the last 5 years have been holding 30% of my portfolio in Bond CEFs. As a retiree without a pension I think that they are invaluable in this low interest era.

Other than the volatility, which does not bother me, the major concern which I have is the long-term declination of NAV. Many CEFs were created after the 2009 crisis and every chart I look at for the period of 2011 to pre-covid 2020 the NAV shows a drastic drop from left to right. In a fund which distributes ROC this is understandable, but my major criterion is funds which distributes solely income (I read annual reports rather than relying on Nuveen CEF Connect which is many times incorrect) and these funds all show NAV declination some as much as 60%.

Can anyone explain this since the period of 2012 to 2020 pre-covid was a period of steady interest rates and I would assume relative constant value for bonds as wells as leverage costs. I do not trade much and I am fearful that after 10 years of CEF ownership my portfolio value will be reduced by 50%.

Any thoughts will be appreciated.