Clearly the terrorist atack is the primary reason for the drop. Many economists stated that event could push the US into recession. To try and take credit for that is ridiculous. Further, the principal is hardly "evaporating".
Don't see dividend cut, but maybe further market price drop as long treasuries and NAV drop, then at some point the attractive yield will stabilize long treasuries.....and this fund..people won't be happy with 2% money market forever...keeping position bought at 7.95..buying more at 7.5 and anything below..
axzl on ignore list,like somebody said on another group, nothing like a perfectly ludicrous "i told you so" to prompt that feature..
so what if there's a little ROC, it's normal for bond funds to have an ROC one year, and the next year have an additional year-end distribution..(must distribute certain percentage of income to maintain regulated investment company status)..you can't perfectly predict your income..