I would think that the current discount is more typical of what we can expect so I wouldn't expect a jump back up to the previous premium level; i.e. there was no big rebound today even though the REITs were up overall by a larger percentage than IGR. That's why I wondered if it would have been wise (for a trader) to sell at the premium when it was there a few days ago.
The premium is all one and IGR is once again in the bargain bin as it's underlying holdings were not down anywhere near as much as the stock was.
NAV closed down 11 cents to $6.46 which puts IGR again at a near 6% discount to NAV at the closing price of $6.08.
Total overreaction precipitated by the ridiculous move at the open today. It will be digested easily over the next few days providing REIT's don't have calamitous moves lower from here. IGR yields 8.88% at $6.08. It's going to keep people coming back again and again on these dips.
This is a leverage fund, so when REITs move up 10%, this fund will move a higher %. Reits are recovering from their historical lows, some losing as much as 75-80% of their values. Reits is not the only sector that has gone up nicely in the past 3 months, look as banks, private equity (BX) and many others.
I saw a guy on cnbc that was asked this Question. He said they fell the hardest and are moving up fast. All reit's have been going up. I suspect that it is in sync with financials. Anyway even though market rising, I would look for pull back soon.