and the market price drops 3.2% . The discount from NAV stands at 12.62%. This 8.66% higher than the 10-year average discount from NAV of 3.95%.
The fear is that the long bull market in Treasuries is over. Panic aside, a 4% ten year at the end of 2014 is not unreasonable. You have to understand what that would do to the NAV of ACG.
I would guess 6 with a 4% 10 year.
But I don't see bond yields anywhere near that level during the given time frame. IMO
If markets didn't behave irrationally they'd never be opportunities