DoubleLine Income Solutions Fund Common Shares of Beneficial Interests (DSL) Covered Calls

DoubleLine Income Solutions Fund is a non-diversified, closed-end management investment company. The Fund’s primary objective is to seek high current income, with a secondary objective of capital appreciation. Managed by DoubleLine Capital LP, the fund invests in a global portfolio of high-yield corporate bonds, emerging market debt, and mortgage-backed securities. It utilizes regulatory leverage to amplify returns and provide a competitive monthly distribution to shareholders.

You can sell covered calls on DoubleLine Income Solutions Fund Common Shares of Beneficial Interests to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for DSL (prices last updated Mon 4:16 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

DoubleLine Income Solutions Fund is a flagship closed-end vehicle designed to provide investors with access to the specialized fixed-income expertise of Jeffrey Gundlach and the DoubleLine investment team. The fund operates with a global mandate, allowing it to pivot between various credit sectors including emerging market sovereigns, domestic "junk" bonds, and securitized credit based on relative value.

Core Business and Strategy

As of 2026, the fund employs a multi-sector approach to fixed income. Its portfolio typically consists of over 480 individual holdings, with a heavy tilt toward Corporate Bonds (approx. 71%) and Securitized Credit (approx. 18%). A defining characteristic of DSL is its significant exposure to emerging markets, which offers higher yields but introduces additional sovereign and currency risk. The fund is actively managed by the DoubleLine Fixed Income Asset Allocation Committee, which adjusts sector weights based on macroeconomic trends and credit cycles.

A critical component of the DSL strategy is the use of leverage. As of March 2026, the fund maintains an effective leverage ratio of approximately 23.3%. While this leverage enhances the fund’s ability to pay a high monthly distribution—currently $0.11 per share for a yield of approximately 12.5%—it also increases the volatility of the Net Asset Value (NAV) and the market price. The fund’s total expense ratio stands at 2.98%, which includes management fees and interest expenses related to its leveraged capital structure.

Competitive Landscape

DSL competes with other high-yield and multi-sector income vehicles. Because DSL itself is not optionable, investors frequently turn to these liquid, optionable peers to hedge credit risk or manage duration:

1. iShares iBoxx $ High Yield Corporate Bond ETF: The primary liquid benchmark for high-yield credit, used to hedge the corporate bond portion of the portfolio.
2. iShares J.P. Morgan USD Emerging Markets Bond ETF: The most active options vehicle for emerging market sovereign debt, reflecting a core component of DSL strategy.
3. iShares 20+ Year Treasury Bond ETF: Used to manage the "duration" or interest rate sensitivity inherent in DSL long-term fixed income holdings.
4. iShares iBoxx $ Investment Grade Corporate Bond ETF: A liquid peer used to gauge broader credit market health and volatility.
5. SPDR Bloomberg High Yield Bond ETF: Another high-volume, optionable peer that tracks the performance of the non-investment grade corporate bond market.

Strategic Outlook and Innovation

In 2026, the strategic outlook for DSL is shaped by the "income-starved" environment of retired investors. The fund continues to focus on "opportunistic credit," recently increasing its exposure to floating-rate bank loans to mitigate interest rate sensitivity. Innovation at the fund level includes the use of "Economic Exposure" modeling, which provides clearer transparency into how derivatives are used to hedge duration and currency risks within the portfolio.

The fund currently trades at a discount to NAV (approximately -6.4% as of late March 2026), a common feature of CEFs that can provide an attractive entry point for value-conscious income seekers. Management’s goal remains the maintenance of the $1.32 annual distribution while navigating the complexities of global credit markets. By combining fundamental bottom-up credit research with top-down macro overlays, DSL seeks to remain a premier choice for high-conviction fixed-income investors.

Want more examples? DSI Covered Calls | DSP Covered Calls