Zachary Scheidt

Blackrock's Toxic Asset CEF: Buy in Post-IPO After-Market

241885 - excellent analysis! And you're right, the investment bankers will likely support this IPO in particular because if it trades successfully, they will want to roll out several more just like it.

Ultimately, the chances are very high that the fund price will dip below NAV (over the next 6 months). But NAV will be VERY difficult to determine as the assets being bought are not necessarily easy to price.

If run well, the NAV should have much less risk based on the fact that the assets are being picked up at pennies on the dollar. However, the public perception of this strategy will swing wildly based on economic reports, unemployment, housing sales etc. I would expect the security to be extremely volatile even though the published NAV will not likely move significantly for the first several quarters.

Zach
zachstocks.com