GREY:CRIUF - Post by User
Comment by
YellowBrickRoadon Jan 18, 2019 12:37am
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Post# 29249634
RE:RE:Why the selling?
RE:RE:Why the selling?Sadie222 wrote: The yield is still good, but the deferral isn’t.
It's definitely a downer to lose a monthly payer, but if it helps them get their finances in order, it will be good for all holders. If intead of paying the distribution every month, they are paying down a credit line, it could save them $ on financing costs. Similar to the HELOC/Mortgage strategy in which one draws an amount from the HELOC to pay down the mortgage, puts their entire household income on the HELOC, then pay bills from HELOC. When HELOC is paid down, rinse and repeat. Only works when income exceeds expenses though, so they still need their payout ratio to drop to a reasonable level.