Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Paul Senior who wrote (30823)	5/3/2008 8:32:15 AM
From: Wallace Rivers	of 78644

I am considering getting back into either FRA or FRB, the rationale being that we are at or near the end of Bernanke's easing. The dividends in these two funda have held, and I would not be surprised if they were cut in the near future, but I still think a fund where the interest paid typically adjusts, with some lag, is a good place to be at this point in the interest rate cycle. I know the leverage used via auction rate preferred securities (ARPS) has hurt these, and other, closed end funds. I know many of these auctions have failed, and continue to fail. Blackrock has been proactive in finding other means of leverage, but I am concerned that there amny be more shoes to drop. Any comments on this would be most appreciated.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next