User 153012

CEF Weekly Review: Wall of Worry

Good comments. The large shareholder has been agitating for board action for years, with no results until now. The spread narrowed on the announcement. Yields remain strong and defaults minimal. No question the advisor wants to keep assets, thus the historical pushback.


On Oct 05 12:12 PM Joe Eqcome wrote:

> Candidly, I think that if that’s your logic regarding the justification
> of a managed distribution policy, the fund should be completely liquidated
> so investors get all their capital back immediately as opposed to
> dribbling it out in a return of capital portion of its distribution.
>
>
> A 15% discount is a compelling for liquidation--particularly if its
> been persistent. This partial payout of capital is only for the benefit
> of the advisor who continues to generate fees. However, the fund’s
> shareholders suffer as the fund gets smaller the expense ratio become
> larger, the liquidity becomes less and valuation will continue to
> deteriorate.
>
> If the trustees had the shareholders best interest at heart they
> should liquidate the fund. But, as we all know, the trustee are usually
> beholding to the CEF sponsors.
>
> Joe Eqcome

CEF Weekly Review: Wall of Worry

Re your htr comment: distribution has been constant @ .0475.

CEF Weekly Review: Wall of Worry

Re your csp "eating your young" comment on managed distribution: would you rather have principal payments immediatly marked down 15% on receipt by the fund, or have that payment in your hands, at 100%, to invest where you please? The new policy was adopted at the urging of the fund's largest shareholder.

Bill Gross: 'Pick Me! Pick Me!'

Fact this am: Bill wins. You lose.

Bill Gross: Politicking for His Own Bailout

Good try, Mike. You lose.

Alesco Financial: REIT Selling For Less Than Cash On Hand

Forgot to factor in the failure and takeover of IMB. CDOs to cure in 4 to 7 quarters? How about no cure. Look forward to new analysis.