Let's get our heads together on the "upcoming" divend cut?
You did not answer the question. Of course, if there is a "depression" we are in deep trouble. Let me simplify: If the NAV 2 months ago was $20 and RNP was leveraged 50%, what percentage is the leverage today when the NAV is $8.29? The shares purchased by the leverage have fallen about 40% on average but the leverage debt remains the same unless some of it was paid off with depreciated shares. I'm trying to determine if the value of RNP is approaching ZERO.
But all shares fluctuate in value (due to the stock market which doesn't always correlate to intrinsic value). If you assume that RNP is approaching a value of zero due to being leveraged, it is only due the illogical market at the present.
My view is that in a recession, the safest place to be (except for cash which also has its risks) is in real estate or preferred stock. Companies that are having trouble stock paying their rent and preferred last. But of course, both of those things can happen.