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Strategies & Market Trends : BAK - Investing

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To: kollmhn who wrote (2813)	5/30/2012 10:11:45 PM
From: Flipper2058	Read Replies (1) of 3249

Re: Flipper- ""My argument has essentially been that if the Gab Fs remain outstanding, the GDL Bs are over priced."" Well they are apples and bananas ;-) GDL_B has less than one year to maturity...GAB-F is infinity. Nothing you don't know. What you're saying I assume is GIVEN the current environment remains the same the F is better...IMHO the B is not over-priced. Well it invovles a subjective opinion, not hard facts. ""there should be a lot or folks that will take that as a money market alternative, liquidity not with standing."" But liquidity IS the defining factor to the yield for this paper...I don't disagree with what you are saying except you have a lot of assumptions on the state of the interest rate market. If you have no problem holding the paper until each reset and put then liquidity is not an issue for you. I don't see you will get much better deal for awhile. The worse you get is A)3% low or B) called at par. I watch GRX-A..another Gabelli fund with no call risk for a few years. Trades at $27.50. If the long bond moves to 5% then this paper will be hit hard. SO really 2 different animals. They is no way out of a capital loss with GRX-A if rates rise.

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