On the DSU board they are talking about how that closed end bond fund is also getting hammered because it has sub-prime loans that might be in trouble. I went to etfconnect.com and they list both funds as having no subprime in their top 10 holdings ......but what is that 44% "other" in their sector diversification? WTF! How can we find out what percentage ofd sub-prime notes/bonds/loans are we holding if any??????
I emailed Legg Mason, who sponsors the fund, and they say they do not have subprime, and there have been no defaults. Rather, the spread between benchmark securities and the high yield instruments they mostly invest in has widened, and this is the main reason for the drop in HIX's price. Their feeling is this trend will reverse when the credit markets stabilize.