Right. We may be betting against the house. UBS may be selling these securities short in order to pay the distribution and then use the proceeds from us as they see fit.
Yes but the smaller the spread the more the price will drop. Especially in the first stage of rising rates when the yield curve will probably flatten.
This time I agree with you. I would buy at 36.That was a ceiling for a long time and I believe could be a floor now.
A wash maybe the best we can hope for. UBS must short these issues to be able to pay the distributions and still use the proceeds as they see fit.
Distribution depend on realizations, not paper earnings. Maybe it will go up with the First Data IPO.
People sell to get the capital gain that can be offset instead of the taxable dividend. IF the market is good it should see some replacement buys tomorrow.