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To: Michael Bakunin who wrote (168321)5/26/2002 7:21:28 PM
From: Oblomov  Respond to of 436258
 
Thanks for pointing this out. I'm going to investigate further (also a warning to stay away -g-).



To: Michael Bakunin who wrote (168321)5/27/2002 10:03:01 AM
From: Knighty Tin  Respond to of 436258
 
mb, Good idea on Spain. These return of capital scams have sure been fooling lots of folks.



To: Michael Bakunin who wrote (168321)5/31/2002 1:48:01 PM
From: Michael Bakunin  Respond to of 436258
 
Nice week for shorting CEF premiums. SNF, after a leisurely drift down, blew a gasket this morning. Yes, Virginia, fat premiums on easily-replicated country funds don't make sense. Still, the market has tolerated stupider situations for longer, so I likely will take the quick profit.

better to be lucky than good,

-mb



To: Michael Bakunin who wrote (168321)5/31/2002 2:27:48 PM
From: reaper  Read Replies (1) | Respond to of 436258
 
<<There are fatter premiums on the high yield funds, but those are a pain to hedge>>

Why are these a pain to hedge? Couldn't you just be long a proper high-yield mutual fund (which presuming they don't price their securities incorrectly you will be buying at NAV) and short the high-yield closed-end? I'm probably missing something here.

Cheers