Blinded by fat yields, investors continue to bid closed-end funds far higher than their NAVs....
Monday, October 8, 2012, 3:25 PM ETBlinded by fat yields, investors continue to bid closed-end funds far higher than their NAVs. 66% of taxable and 73% of muni-bond funds trade above NAV now, compared to just 30% a year ago, with often the funds with the highest distributions having the highest premiums. "We believe that an excessive premium for the fund is not likely to be sustainable," says Gabelli of one of its funds. Are investors listening?
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