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

To: Tommaso who wrote (95086)	3/17/2002 10:41:54 AM
From: Knighty Tin	Respond to of 132070

T, I like the arb, as EWY can be borrowed easily. I don't think many are shorting the Korean CEFs as the shares are nearly impossible to borrow. The short I shares, long discounted CEFs is an arb that always seems to work, assuming the Cefs are at least average managed. The main reason these funds went to a discount is because the Korean market went up so much. CEF discounts often increase during a bull run and collapse during a bear run, which makes them lower volatility ways to play the countries. Of course, as soon as you count on that problem, it won't work for the particular fund you are in. <g>