how can it be that this fund which holds so many different investments,, mostly fixed income, can be down twice the market averages over the last few months???? sure would like to understand how this is possible.
Leverage. Preffered shares are down 40% on the average this fund was leveraged at 30% which adds another 12% down ect.Leverage also is what will cause this thing to bounce back a lot faster if the preffered market ever recovers
I've tried reading their prospectus but I'm no good at it. Does JQC have a lot of subprime mortgage exposure??