If you did not enter the order with "do not reduce", your price was adjusted downward for a dividend.
Depending on the BDC, they can earn anywhere from 12-18% by not paying the distribution on repurchased shares. They can't make loans in that stratosphere. Of course they won't do it, fees come first.
No, just sold a small trading position is NCZ. Actually took a PROFIT! I no longer have any opinion as to when a bottom is reached. The Central Banks balance sheets make everything artificial, so rational, investment thinking no longer seems to work.
I don't believe that this sell off has anything to do with rate increases. The oil/commodity collapse is saying that things are really weak out there and anything that is not investment grade is getting annihilated.
Learn to play the RO's. It's one of the few times in the market when nothing else counts, only the specific strategy of playing the RO and the sympathy play. When the RO is over, you can go back to arguing the merits of premiums and discounts, but right now, you are fighting the wrong war.
Seems to be re-establishing more normal spread between junk and investment grade. NCV/NCZ had the predicted trading bounce the first time they went sub-NAV. Now the dividend cut being priced in. Don't know when they cut, but the longer they delay, the more they trash the NAV. Though they would have cut starting with July (nice 1/2 year point), but they are being stubborn. Earnings come out before end of month. Let's see how much they actually earned.
The shorts will make sure that the RO price is NAV +7%, the lowest price possible. That's why they short in the first place.
CLM is on it's own now, since there is no longer a reason to short CRF (90% of mkt price is now below NAV +7%), so the sympathy trade should be over. We will get a better bounce if the CLM sellers are shorts. Only "The Shadow" knows why they are doing it.
Many, many years ago, I had 2,000 shares of EMC, on which I was writing covered calls. Was making really good monthly income. The shares were eventually called and the price got "too high" to continue. Had I held those 2,000 shares and rode the tech bubble and all the splits, I would have had 64,000 shares and the price went to $100/shr, that's $6.4 million. But really, who would hold that long?
Let's use a $16 NAV for CRF, accounting for this weeks x/d and the next. $16 x 1.07 = $17.12 so, yes a $17 market price is possible. Would think it would occur after the new shares are delivered, and new shares can be sold at a higher market price. The selling drives down the market price. Adjust for NAV assumption, but you are in the ballpark.
I seriously doubt that anyone actually believed you. You gotta watch the price to confirm such thing. Price would have skyrocketed.
The CRF fall makes complete sense but the CLM move can only be described as sympathy. Very seldom see it this close to NAV. Buying under $19. Maybe some traders have their wires crossed regarding RO?
CLM absorbed CFP, nothing to do with the CRF RO. The CLM RO scam will be in the early part of 2016 (my opinion on the timing). If history repeats, CLM shares will steadily rise into their RO.
beginning today, and for the next 45 days, the mystery of this fund is revealed.