A few year ago I became involved with a fund selling at a 18-19% discount and a battle with management on what they were doing about the discount(Salomon fund). I just happen to own it and was not for it opening the fund. BUt I found out some interesting things in the process. When a closed end fund buys it's own shares back at a discount and retires them the difference between the purchase price and the NAV is ADDED as a profit back to the fund.
So certainly it makes a hell of a lot of sense for funds like KBA to buy some it's own shares back, praticually with boat load sof bonds maturing...but what will they do, buy more bonds instead 5% of make the shareholders 18% by buying in open market shares. Tsk, Tsk.