Gabelli CEF Preferreds Have Modest Losses

Of all the Gabelli CEF preferreds only 4-5 of them have losses over 1% today. Of course the biggest loser is the GCV-B 6% Gabelli Convertible and Income issue which is off almost 6% (ouch) since yesterday.

Modest tumbles are good for holders that may want to exit overpriced issues–now is the chance. The odds for further redemptions would seem to be very high in the next couple of months, but of course one never knows.

6 thoughts on “Gabelli CEF Preferreds Have Modest Losses”

  1. I have a small amount of GAB-G, bought at $24.75. I hesitated to buy more due to the low average trading volume, but now that Fidelity has reduced its commission to $0, it will be a lot more price efficient to buy in small lots. If this one ever goes back under par, I will be looking to buy more.

  2. General question. Does anyone have any idea how many preferreds exist where the issuer could reasonably refinance with a savings of greater than 80-100 bps? I’m just wondering how many preferreds exist like that vs. the number of preferreds per week that typically IPO. How many weeks would it take to refi all the preferreds out there where it’s economic to refi based on existing pace of issuance.

    1. You also need to consider the size of the issue. Some are worth billions, others in the tens of millions.

  3. I sold my entire position in GDV-A right out of the open today, at $26.28.
    Trying to buy back at around $25.90.

  4. As a holder and accumulator of many issues. I would look at a pull back as maybe buying opportunity. I have long felt that the low interest rates have pushed some issues to nose bleed levels. Thankyou for all you do. I hope my kids say the same long after we’re gone and look’n at the lids

Leave a Reply

Your email address will not be published. Required fields are marked *