Silicon Investor (SI) -- The First Internet Community

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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (63334)	6/28/1999 11:38:00 AM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

Jim, The closed end junk funds are also interesting because most are levaraged and selling at premiums. Unfortunately, there are no puts on them and they are well-nigh impossible to borrow for a short sale. For example, the Morgan StuckUp High Income Fund is at a 35% premium. However, it is probably just as well. Shorting these things could be a mug's game. Nothing, and I mean nothing, sells like very high yield, no matter how risky. I have often tried to convince fund mgt. cos of that fact, but they don't quite get it. My idea has always been to give the public what they want, extremely high yield, without the risk of junks. But the same people who will loan money to a basket case company think that doing spread conversions and other options strategies is risky. <g> Nobody said you had to be smart to run a fund co.