Qniform

CEFs to Weather a Continued Storm in Equities

Another caution for due diligence is in order when picking CEFs. Check the use of leverage used in the purchase of the fund's assets and the liquidity position of the fund to maintain the div. Typically assets purchased w/ leveraage are financed with short term paper, which can lead to forced asset sales to maintain regulatory ratios if asset prices (NAV) drop.

I think any discussion of CEFs should include these issues.