Seeing the equity markets up this much today you have to know this is a bear market rally.
We have little knowledge (and the knowledge we have is suspect) on the extent of economic damage to the economy–but I guess it is ‘party on’ for the computers.
I just recapped the mREIT preferreds last night and today they are rocketing with some up 100%–this is the time you wish you had more than the 200 shares I bought. I won’t chase too hard here–they are bound to set back after today–and more as reality sets in.
I did nibble the Invesco Term Trust (IHIT) today as I bought some at $7.60 yesterday but today it was lower so nibbled a bit more.
I also nibbled more of the Gabelli Multimedia Trust 5.125% (GGT-E) perpetual.
So with a couple little nibbles I am done for the day I think. Better opportunities are ahead.
Hi any advice on IHIT?
Thank you !
I did a lot of work on it about a year and 1/2 ago… It’s been a loser… It’s a complex one to understand but dollars to donuts they will use their ability to extend the “maturity” of the fund 6 months or more and this will not be a target term issue paying off in December. When constructed, they bot a lot of mortgage related issues and projected mortgage related prepayments would give those securities actual maturities that would match up closely with the December term date… When interest rates ballooned, that absolutely destroyed their estimated prepayment schedule. Now they’re left with much longer duration holdings than they ever thought possible….. So even though most target terms issues reduce payouts as they approach term, I believe this one has yet to do so….. That’s another indicator they will not be paying out in December… They are also almost guaranteed to not ever be able to reach their term target price… CEFconnect has this trading at a 5% discount to NAV… Don’t be fooled by that thinking it will narrow by December and you’ve got an easy locked in gain to be realized in 4 months…. I doubt very much that will happen.