Argent's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/121517/comments http://seekingalpha.com/article/141517-why-etfs-are-a-scam?source=feed#comment-542474 542474 Thu, 11 Jun 2009 13:35:38 -0400 http://seekingalpha.com/article/99091-what-will-happen-to-closed-end-funds?source=feed#comment-279372 279372
Second, to answer "rich mcn," there are no "redemptions" of commom (or preferred stock). The oustanding shares are fixed and trade like any other stocks in the market. With respect to the NAV driving down the prices I don't agree. These products are bought primarily for their (tax-exempt) yield which comes from muni bonds in the portfolio regardless of whether the market value of those bonds declines - it's a fixed rate.
My own opinion as to why these stock prices are going down with the overall market, regardless of yields of up to 8.00%, is that many are selling to raise cash and the low daily trading volumes of many of them just get killed by the specialists who simply are afraid of them. Twas ever thus with these things, i.e., thin volume making selling difficult.
I look for the majors - Nuveen, Black Rock, Eaton Vance, etc. - to begin conversions to open end status. Of course they'd have to deal with the auction rate preferred stocks many of them use for leverage; but that's another story. I know Nuveen can buy stock in the open market if the NAV goes below a certain point and stays there for a certain number of consecutive days.]]> Fri, 10 Oct 2008 17:09:17 -0400
Second, to answer "rich mcn," there are no "redemptions" of commom (or preferred stock). The oustanding shares are fixed and trade like any other stocks in the market. With respect to the NAV driving down the prices I don't agree. These products are bought primarily for their (tax-exempt) yield which comes from muni bonds in the portfolio regardless of whether the market value of those bonds declines - it's a fixed rate.
My own opinion as to why these stock prices are going down with the overall market, regardless of yields of up to 8.00%, is that many are selling to raise cash and the low daily trading volumes of many of them just get killed by the specialists who simply are afraid of them. Twas ever thus with these things, i.e., thin volume making selling difficult.
I look for the majors - Nuveen, Black Rock, Eaton Vance, etc. - to begin conversions to open end status. Of course they'd have to deal with the auction rate preferred stocks many of them use for leverage; but that's another story. I know Nuveen can buy stock in the open market if the NAV goes below a certain point and stays there for a certain number of consecutive days.]]> http://seekingalpha.com/article/99091-what-will-happen-to-closed-end-funds?source=feed#comment-277772 277772 Thu, 09 Oct 2008 11:31:02 -0400 http://seekingalpha.com/article/78680-complex-simplicity-a-better-portfolio-of-etfs?source=feed#comment-173154 173154 Sat, 24 May 2008 10:40:09 -0400 http://seekingalpha.com/article/77547-5-things-you-may-not-know-about-etfs-but-should?source=feed#comment-168773 168773 Fri, 16 May 2008 10:42:31 -0400