> They have to pay out 90% of income.
> NRO's assets must reduce thier divvies for
> NRO to reduve it's.
The tax law says 90% of income must be distributed (or else they pay tax on it). NRO has oceans of unrealized losses on their positions. All they have to is realize a small fraction of them and thereby reduce their taxable income to zero. Then they can divert all the dividends they receive from their holdings to reducing debt.
Every dollar of dividends received from holdings that is redirected to retiring debt (instead of maintaining the suicidal $0.15 dividend) is a dollar of assets they don't have to sell in de-levering. It may be too little too late, but then it might not.
What is happening here is amazing, historical. I agree, many of us are in this too deep to sell now. A lot of things are needed starting with some straight talk communication from the new owners. I'm sticking with this and not selling.
It's a catch 22 for this company. They have to pay out 90% of income. Yet they cannot remain at over 50% leverage.
There is no connect between NAV and cash flow.
NRO's assets must reduce thier divvies for NRO to reduve it's.
Too far too fast?
The question should be, if the stockmarkets rally, will NRO keep up? Is it maybe worth the chance to sell NRO at a huge loss, by a larger index fund or ETF to maybe catch a 10 to 15% market pop and then look back and re-evaluate NRO. Maybe 30 days pass, and you can claim the loss, and still get back into NRO?