pablosplace13

Real Estate CEFs 'Crushed' YTD 2008

Be very careful. Do not touch any of the funds that employ Auction Rate Leverage as you will get killed. Cohen and Steers (RQI) for example, is still redeeming more of their ARPs as they are being forced to liquidate their holdings which is cannibalizing any fund using leverage. Now that most banks have purchased back the ARPs from their clients, firms such as Merrill and Smith Barney are going to force the fund companies to redeem the ARP's and liquidate their positions which means further selling of the underlying positions to reduce leverage and pay down debt (aka...Auction Rate Preferreds)