Post by
AnEducator on Jul 24, 2023 6:59pm
NAV July 24
~$14.35. The capital shares are trading at a discount of ~$0.16.
Why an investor would purchase DFN instead of DF is completely beyond me, especially one willing to hold longer term.
Comment by
Larry50 on Jul 24, 2023 7:07pm
Perhaps receiving no dividends for the last 14 months might be one logical reason as opposed to receiving dividends on DFN consecutively for the last 33 months.
Comment by
AnEducator on Jul 24, 2023 11:24pm
Circumstances have changed drastically over the last year. DFN no longer has the downside cushion it once enjoyed, making future dividend payments questionable. As a result, the premium is now a much larger risk factor. I understood the allure of DFN when the NAV was much higher. But why does it still persist despite the elevated risk? DF, with its discount, has far better risk/reward metrics.
Comment by
mouserman on Jul 25, 2023 4:47pm
DF unit nav to JULY 25 = approx: $14.27 up 14 cents since the JULY 14 update. Actually has done better than DFN due to weightings difference and also a lower cash position. After distributions (DF is only losing 5 cents for preferreds) the commons would have a value of $4.22 , so still above the number on JULY 14th. Seems like DF is a better bet here than DFN...