By my calculations if the 10yr goes to 4% ACG will lose around 2.5% from its NAV (given recent performance). The dividend is 6.25% and the current discount to historical discount is at a premium of either 6.43% for 1yr or 8.33% for 5yrs.
Can someone please explain to me why anyone wants to sell here?
!That long term term treasuries will fall in value due to a fear of inflation. 2. That the discount of ACG will increase due to the headline risk of more news about the increase in long term interest rates caused by fear of inflation.