CEFL has a seasonal factor which causes the February dividend to be lower than all of the other monthly dividend.
Even with a smaller February dividend the annualized dividend on a monthly compounded basis is 26.8%.
The weighted average discount to book value for the closed-end funds that comprise CEFL and YYY is now 13.52%.
Even though 28 of the 30 high dividend closed-end funds that comprise the index upon which the UBS ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (NYSEARCA:CEFL) and the YieldShares High Income ETF (NYSEARCA:YYY) is based pay monthly dividends, there is a seasonal factor involved with the February 2016 CEFL dividend. Of the 30 components in the index, nine will not have ex-dividend dates in January 2016. Thus, they will not contribute to the February 2016 CEFL dividend.
Only the Morgan Stanley Emerging Markets Domestic Debt Fund (NYSE:EDD) and the Royce Value Trust (NYSE:RVT), a newly added component, now pay quarterly dividends in January, April, October, and July. Thus, EDD and RVT will not be included in the February 2016. Additionally, there are seven other components that pay monthly, but will not have ex-dividend dates in January 2016. As shown in the table below, which also indicates which components were newly added in the rebalancing in January 2016, these closed-end funds mostly had two ex-dates in December 2015 and none in January 2016. This is a common practice for closed-end funds who have a "clean-up" additional dividend in December to facilitate compliance with the regulations which require regulated investment companies distribute most of their income to shareholders each year..."
"...On a monthly compounded basis that brings MORL's annualized dividend to a record 36%.
My projection for the February 2016 dividend for the UBS ETRACS Monthly Pay 2X Leveraged Mortgage REIT ETN (NYSEARCA:MORL) and its' new, effectively identical, sister the UBS ETRACS Monthly Pay 2X Leveraged Mortgage REIT ETN Series B (NYSEARCA:MRRL) is $0.0342. This is the second lowest monthly dividend MORL has ever paid. Only the February 2013 dividend of $0.0313 was lower.
Only two of the 25 MORL components: American Capital Agency Corp. (NASDAQ:AGNC) and ARMOUR Residential REIT Inc. (NYSE:ARR) had ex-dividend dates in January 2016. ...."
•Our models indicate that $40 oil is unsustainable as supply will eventual fall of a cliff.
•If Swift Energy And Sandridge Energy can survive long enough for oil to rebound the returns on their securities could be enormous.
•Swift Energy has filed a prepackaged plan that allows current shareholders to retail 4% of the equity in the new company plus warrants for additional shares.
•The possibility that Swift Energy could emerge without bond debt and with significant assets presents an interesting opportunity albeit with enormous risks....
Our macro models indicate that the long-run supply curve quantity for oil at a price of $40 is about 80 million barrels per day. Thus, $40 is an unsustainable price. World demand is about 95 million barrels per day. This is not considering any increase in fuel consumption that may result from lower prices. The decline in world exploration and production capital expenditures so far, are predicted for 2016 alone are projected by our models to reduce oil output by 7.1 million barrels per day..
Actually, it may be higher since PMT announced their dividend and it does go ex-dividend in December and that was not included in the $0.6729 projection
projection of a $0.2659 monthly dividend for CEFL would result in a 22.4% yield on an annualized compounded basis.
•The weighted average discount to book value for the closed-end funds that comprise CEFL is a substantial 13.4%.
•The action by UBS to not issue any new notes of its outstanding ETRACS ETNs, which included CEFL, does not impair the credit or liquidity of CEFL.
•Fidelity, which a prohibited its clients from buying the old ETRACS ETNs such as CEFL has reversed that policy and has resumed allowing purchases of CEFL. ..."
seekingalpha. /article/3707756 -cefl-still-attractive-with-22_4-percent-yield-and-large-component-discounts-to-book-value
projection for the December 2015 MORL dividend results in a 28.3% yield on an annualized compound basis.
Since the spring of 2013 mREITs have vastly underperformed what could have been expected given the behavior of short and long term interest rates.
The price of AGNC has declined by 45.6% while the book value only declined by 20.3%...."