haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Last week I bought WIA, a leveraged CEF holding 80% TIPs, and 20% mostly investment grade corps. It has a relatively high expense ratio of 1.49% of net assets (about 1% of total assets.)
The opportunity came from the price at which I bought it. The discount was great enough that the 1.5 % fee's effect on the distribution was neutralized or slightly more than neutralized by the discount price I paid going in.
Of course, if I make further investments, I will have to check to see if this still holds true at whatever discount is available at the time of the investment.
BTW, Bill G. must have felt similarly, because in early April Cascade Investments, his investment vehicle, filed a 13D showing as I remember about a 7.5% position.
There are complexities to this fund, so anyone considering an investment should look at the offering prospectus. The preferred shares financing the leverage are refunded in competitive bid weekly. Management attempts to actively manage this funding risk with a varying amount of 10 yr T Bond puts, and interest rate swaps.
Ha
The opportunity came from the price at which I bought it. The discount was great enough that the 1.5 % fee's effect on the distribution was neutralized or slightly more than neutralized by the discount price I paid going in.
Of course, if I make further investments, I will have to check to see if this still holds true at whatever discount is available at the time of the investment.
BTW, Bill G. must have felt similarly, because in early April Cascade Investments, his investment vehicle, filed a 13D showing as I remember about a 7.5% position.
There are complexities to this fund, so anyone considering an investment should look at the offering prospectus. The preferred shares financing the leverage are refunded in competitive bid weekly. Management attempts to actively manage this funding risk with a varying amount of 10 yr T Bond puts, and interest rate swaps.
Ha