Timothy; NCV holds CVO bonds as reported in cefconnect
Cenveo 7% 7.00 15 May 2017 $21.49M 1.90% of NCV holdings
One of NCV's largest holdings is convertibles in CVO, which is up 10% today alone. Anyone know the details of NCV's holdings in CVO?
Malibu...I appreciate your response. All the CEFs I own, I bought them for income primarily. I don't do DRIP. I have divvys deposited in my checking account and then I decide what to buy next. I try to hold any buy I make to within 5 to 10 % of the worth of my brokerage acct. By chance if any holding does increase in value I won't hesitate selling and taking capital gain. I sold PFL the day before Mr Bill resigned from PIMCO. That CEF took a dive and then I re-acquired it some days later.. Trying to stay ahead of this can be challenging. From what I've read of your comments, you seem to be doing OK. I don't gamble in casinos, but, I'm not afraid of trying to make a buck in the market. Have been at it since 1988. Good luck to you.
I held. But then again I own NCV for the income. Growth is a distant second objective for me in this instance. I will re-invest some of the dividend from time to time. A very slow growing economy seem to be the ticket for this investment.
I'm wondering how many investors decided not to sell and did the right thing by letting the market settling down. Mr Bill doesn't own the market, despite what some people thought when this correction started. The problem for those who panicked and sold and probably took losses is when do you reenter the market? Some good buying opportunities have already gone by..
Kid, Good point. I agree that the NAV is dropping but that is a reflection of market perception. And the probability of interest rates increasing seem to be driving that perception. However the face value of the bonds they own remain the same. so as long as they are not sold, no loss. NCV is paying a yield of 11.6% and that will carry some risk. Also with a positive UNII the fund is not returning capital in the monthly distribution. I plan to hold for now as I think the future increases in interest rates will not be too steep as to reduce the NAV too much more. Though the premium may shrink back toward the NAV.
Good fortune in your investing.
NCV was a wonderful place for income from 08 through 13. Here in 14 it doesn't look so good. The NAV is down 9.5% this year, basically the amount of the div. I'm out until at least I see the NAV stabilize. I agree that you don't expect a bond fund to appreciate much in price, but you buy one for net asset safety and NCV isn't providing that now.
NCV is a good investment for income. Price appreciation? not so much. Want growth buy an equity or equity fund. a bond fund is the wrong place to find growth. Also, try re-investing the dividend and watch the shares add up quickly.
I prefer making my own decisions about what, when, and where I reinvest my divs TY. NCV is only one of the CEF's I hold. My first foray into CEF's was in Sep 2003 with PML a Pimpco MUNI. Before I got into online stock trading I was with Merrill Lynch. They reinvested the Divs for me and looking at my acct statements I noticed they always bought shares at the high of the day. I mentioned this to my AE and he said he was unaware about that, yeah right! Automatic Div reinv is a sucker bet IMO. Yesterday I bought some US Steel (sym X) for 31.00 when it crashed due to another automatic function (namely stop sell orders) got triggered by a sudden drop in the mkt. It closed at 32.91! If I had auto reinv my Divs I wouldn't have had the dry powder to do that. Personally I thing the scheme is a plan to keep money in the coffers of the fund and not in your acct.
Any rumors of people jumping out of windows? If one did not sell at the beginning of this correction,,it is too late now. You would stand a much better chance of coming out OK.by just riding this thing out. The holdings that make up this CEF are all good entities and will go back up. I owned NCV from 2007 and held it through 08 and 09 , during the worst of the recession, and still have it in my account with Merrill Edge. I've been in the market since 1988 when I started with Citizens and Southern Investment Services in Atlanta, Now known as Bank of America. Haven't lost any sleep yet over this latest drop. I wonder if praying might help..
I think you should buy more !! This is going on sale. We should be getting close to par with the NAV. QE4 Talk, talk on the street is now Feb 2016 for first rate hike. I think the dust has not settled, we should all buy more, reinvest div, and hang tight. It doesn't help that Gross is gone, even though this is Allianz. However I believe the head of Allianz recently left. I'm not sure if that contributed to some of this irrational selling. We also have automatic trigger settling that perpetuates itself. When the dust finally settles, I do think this will be realized as a bargin and money will come rushing in. Bonds are still a great place. The economic policies put in place by this administration and leftist Europe are stifling progress like it or not.
Sentiment: Strong Buy
Of the seven hi yield closed ends I own, only PTY is up today. For the most part, they're all sucking gas.
One factor that can affect the NAV and drive it down is if the monthly div cannot be made then it comes at the cost of the NAV. The demand can raise the share price since this is a cef or lower it. Any other comments would be appreciated.
Sentiment: Strong Buy
From the web.
Is it the change in price of the underlying securities? Or is it the change in demand for the mutual fund itself?
NAV is the value of the assets minus the value of the liabilities per share. Demand for the fund itself has absolutely zero effect.
Is it the same thing that causes the price of a stock to go up or down (irrational habits of human buyers and sellers)?
Only to the extent they affect the value of the assets (or liabilities).
I've noticed with some of my mutual funds that the NAV goes down significantly the day before a dividend or capital gain, so the fund management must have some control over the NAV?
When the dividend is paid (more precisely, when the fund "goes ex dividend"), the cash paid out to shareholders gets removed from the fund's assets; that decreases the assets remaining per share.
My two cents:
Another cause of the NAV going down is if 1 of the bonds in the fund goes into default, the NAV will go down an amount equal to the percentage of the total basket of bonds represented by the bond that defaulted. Also, as the portfolio of securities in the fund evolves, the NAV will move up or down.
NCV, NCZ still trading at a premium to NAV. Just about all the high yielders (REITS, BDC's) are now trading at significant discounts to NAV. NCV NAV is at $8.53 as of yesterday, so we are getting close. These type of markets can take down premiums hard.
yes---posted here as well.....why the steep decline tho?? anyone??
Sentiment: Strong Buy
understand completely----in same condition....NOT sure why selling off this hard....both ncv and ncz...anyone???