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- | Earnings
- | Dividends
- | M&A
- | On the move
- Wednesday, October 10, 2012, 12:41 PM Not limited to mortgage REITs, panic grips another favorite of income investors, closed-end investment funds - notably those trading far above NAV for seemingly no other reason than their fat yield. The payouts on many of these are sustained by digging into capital rather than by earning a return on it. PGP -7.5%, PHK -7.8%, PHT -5.5%. 8 Comments [Financials]
- Monday, October 8, 2012, 3:25 PM Blinded 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? 35 Comments [Financials]
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Shane Blackmon: tomorrow at a reasonable price (no discount), it would only be worth $8.38 the NAV for PHK -
Shane Blackmon: You wan't to pay $160 for somethign that is worth only $100?
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Nicholas Marshi
Sold out all positions in JNK and PHT just in case there is a global contagion story. Junk bonds have been slowly deflating recently - View all 0 replies
LATEST REPLIES
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- View all 5 replies
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Shane Blackmon: tomorrow at a reasonable price (no discount), it would only be worth $8.38 the NAV for PHK -
Shane Blackmon: You wan't to pay $160 for somethign that is worth only $100?


