RE:Should I sell all my FTNRiskyAssets wrote: there seems to be no event to trigger such slide! Could anybody out there throw in a cent or two? Thank you all!
Read the previous posts in this forum.
Short version:
Select your cause (interest rates, Democrats take House, Trump, trade wars, China, Brexit, general uncertainty)
Financials down 10 - 25%
+
Class A leverage + FTN suspends distributions when below the $15 threshold
+ NAV = $14.62
= massive selloff
= major capital losses for those who bought higher, shorts and traders making $$
Class A Split shares are in a serious Bear market due to
leverage. There is not much change on the Preferred side. That is by design. The preferreds get the reliable dividends, the Class A get leveraged capital gains / losses. The Class A make more than Preferred in good markets and lose big in Bear markets.
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For a comparison of Split Share Funds, see this blog: