RE: We Are In With The Big Boys.....Yes, I decided to pick up some of this CLO this AM. The expense ratio is 6/10ths of one percent, a lot cheaper than paying commissions to buy all of these oil sands plays. The volume will be low as this is not for everyone, but it is a nice addition to my PBG holdings, and allows for some capital appreciation across the oil sands sector, especially if the consolidation that is expected(e.g the Shell Canada deal) and possibility of SEC allowing bitumen to be considered acceptable as 'non-conventional reserves'; this has been a long time coming, but as Coxe argues, it is inevitable and may cause a run on producing Canadian oil sands plays, all of which are included in the index that CLO follows.
We have had a bit of a recovery rally in Canadian energy here. After the US elections we could see some revaluation for PBG and the others in the oil sands sectors. Gasoline prices in the US will not stay down with demand rocketing up again.
Should THAI play out favorably, a combination of a basket of oil sands plays with PBG could be a winning formula, no? Lower operating/recovery costs for most of the oil sands plays via THAI combined with RLI and 180 billion bbls, uh huh.
vocex1