RE:RE:RE:RE:BK unit nav to OCT 14 = approx: $19.87You're much more trusting than I am of the management of any corporation.
Far to often, they're bobbing for apples in a water tub, with their game plans.
That doesn't seem that some are better than others.
When push comes to shove, earnings and the ability to pay continuously at any rate, floating or set, will dictate what happens. Sometimes, that isn't nearly as visible as it should be or is supposed to be, to management or investors.
Everything about this particular financial cycle is different, while being the same.
At this point in time, BK is showing close to a buck of positive income, which isn't anywhere close to the overall payout if distributions to the preferred/commons payout.
That can't go on for a long period of time, without something having to give.
I can't find a missed distribution payout over the past three years. Maybe I didn't look close enough??
Either the price of the units will have to give up their levels or the distribution will have to be cut and NAV levels will have to be brought back to saner levels.
FTN on the other foot, has a NEGATIVE income well over a buck per unit.
NAV is lower but without positive earnings a red flag moment is happening IMHO.
The one thing they have going for them, is they only missed ONE distribution to commons over all of the last three year period.
Depending on your risk appetite, mine is quite low and your ability to handle continuing capitol declines and distribution diclines, which in the case of both of these investment vehicles is happening over a long term (+6 months) trend and doesn't look like it's slowing down anytime soon. IMHO not until at least mid 2023 or later.
The big pain is yet to come as liquidity throughout the markets and the whole economy declines and finds a real bottom.
The recent dead cat bounces have given us with decent profits, a good chance to sell and hold back until some better buying ops make themselves obvious.
I have never been able to reliably pick dead center bottoms or tops, until they've passed.
That being said, I don't believe we're at the bottom by about 15-20% yet.
I fully respect the knowledge and opinions of the posters on this site, but take all of their opinions and information with a grain of salt. That doesn't mean they're wrong or right.
One of the biggest killers of capitol, close to the bottom is run away emotional momentum, when unscrupulous/automaton brokers and brokerages start to run amok and advise their clients to continuously re evaluate and re balance their portfolios, which is very profitable for them.
That hasn't happened, YET. So far its just been a slow, orderly decline, which is just starting to become visible in a very meaningful manner to investors that depend on others to make their choices for them.
This board is very good in that most of the posters do their own DD.
GLTA the good folks here.