So using your logic, the 2008 Great Recession was the fault of Democrats who controlled both the House and Senate. Lets hear how you try to wiggle your way out of that one.
Dividend payments of MORL index components are paid monthly, in roughly 3 month cycles. Back in Feb 2014, AGNC (second largest index component) paid quarterly dividends, not monthly as it has for the last few months including Nov 2014. There are only 2 monthly paying index components and 3 or 4 quarterly paying components that affect the Feb distribution and these are substantially the same as back in Nov 2014. What is different is that the NAV value of MORL has decreased, thus forcing a rebalance of 2x leverage.
Based on normalized dividend, pre oil slide, BBEP paid ~$2 dist and avg share price of $22 around Sept 1. Question now - does oil continue to slide, move sideways or start climbing throughout 2015? Current 1.35 dist coverage good for $60 bl oil, so room for slight oil price decline with no further dist. erosion. Anything above $60 bl sends dist. and stock higher. IMHO.
That caught my eye as well. One positive is the 1.35 distribution coverage, although that is based on oil at $60. LINE at least has a better plan for handling their debt at this time.
Looking closely at the rebalance, it appears that over half of the original components have been dumped and of the new ones added, most are down today.
Looks like CEFL took major hit due to rebalancing and change in index components. 2 components were consolidated at year end and are no longer listed. Not sure how this affects index and how UBS adjusted for this. NAV down while the components listed as of Nov 2014 are virtually all significantly higher.
Looking back at Sept's $30 / share with a $2.90 dividend, equivalent price somewhere around $13. Difference is now dividend coverage at 1.2 vs 1.0 then. Also, if oil and NG stabilize and potentially rise, dividends should increase and forward looking PPS should rise.