Real Estate CEFs 'Crushed' YTD 2008 [View article]
There is no reason to look like you've seen a ghost when you see leverage. You're not going to "get killed" just because a CEF is leveraged. Leverage magnifies the downside and the upside, that's all. If you think the underlying asset is going up, leverage is good. The banks can't force the CEFs to redeem their preferreds, although many CEFs must do so to meet assrt coverage requirements. This article should mention discounts/premiums. I'd short RFI before I'd buy it.
Real Estate CEFs 'Crushed' YTD 2008 [View article]