Bot at 22.85 today. The CEFs are really on sale after the Fed fiasco with 20%-25% drops. The Pimco funds have good yield plus you have retained earnings paid at year end. I guess you know about -- cef connect-- if not get there quick.--good luck.
At inception until about a few months ago, DBL did not use leverage and it traded
at a premium and did not use leverage.
Now after the MBS mess from June/July, DBL now trades with a discount and
Gundlach is using about 25 % leverage.......to buy non-agency MBS that have
been reduced in price by the market ???
I am now long at $ 22.52 and planning for a 8.88 % yield, and maybe more, once
Gundlach gets all of the leverage invested in relatively higher yielding, non agency
The story of the preferred of RBS is still valid but risk reward is not good as it was last December. I think u mean preferred T that resumed paying a dividend. My friends at Senvest hedge fund made a ton of money on that.
I think 25 will be bottom for now on DBL. Has a good pedigree and divy isnt shabby at all. Financial advisor wants me to buy preferreds in RBS (royal bank of scotland). I think he's nuts. Will put in at 25 for DBL.
I agree , but this might be one of those that seem to always trade at a premium. I keep nibbling under 25.5 while hoping for the same drop you are
The nav has been remarkably stable since inception. The problem is there's still a premium of 5%. If this will be eroded I will buy it and keep it as perfect place to park cash. Under $24 it would be great
at least once a year there's a massive sell-off in closed-end funds. Historically the month of May is a good candidate for that to happens. I think I will leave a GTC order a couple of bucks lower just in case history will repeat itself.
That would be great IF it gets to that point. But, I think this will be one of the rare funds that will not sink to that level. If it gets back to $25 will be the low point for them for quite some time. I think 25.50 to 26 will be a more realistic level. Good management in it and what they are doing with this fund shows great growth for at least the next 2 years till housing gets sorted out ( if it ever does).
First rule: never buy a CEF @ IPO price.
Second rule: never buy a fund @ premium.
It's possible (see PIMCO) that CEF trade at absurd premiums for a long time but I don't care. I don't want to wake up one day and see my portfolio down for no fundamental reason but just because the premium suddenly eroded.
Look at EDF. That's the best of breed corporate/local emerging market fund. They only offer mutual funds to institutional (minimum investment 1 million).
Their closed-end fund is a MUST have but you had chances to buy it at discount last year. Just be patient. Greed is good only for Gordon Gekko :-)