RE:NAVDespite the close proximity to the payment threshold, I find it stunning that people are willing to pay $6.61 for shares whose value is only $4.93, especially after the carnage everyone has witnessed the last couple of days. Did people not learn anything about the potential risks once the NAV has fallen to these levels?
The downside risk here is immense, even if DFN happens to declare a distribution next week, which is still very much in doubt.
AnEducator wrote: Currently around $14.93. Huge bounce from yesterday's close with the NAV only around 0.54% off the payment threshold of $15.01.
Someone here correctly inferred that in order for a dividend declaration, the NAV has to exceed $15.00, and I can confirm that as per the prospectus:
No regular monthly dividends will be paid on the Class A Shares in any month as long as any dividends on the Preferred Shares are then in arrears or so long as the net asset value per Unit is equal to or less than $15.00.