RE:RE:RE:RE:RE:RE:Short position on LBS jumped to Nov 15Well if a person was to check the prices paid in offerings for the UNITS of commons and preferred, in then past 5 years or so, you would find the average price paid was well over $ 8 for the commons.
So it is quite a haircut getting only 4 shares for every 10 you own. And the resulting price will still be below what most of them paid. The folks who shorted FTN at over 7$, ( i was one of them) made the real money .. as in over 100% return in a short time. NAVGOD another who was short, and i think a much bigger $$ amount.
that is the trouble with the very high yielding split funds, without capital gains they are NOT sustainable.
I am on the fence as to whether FTN will continue to pay every month in 2021....as I see another huge correction coming once the pandemic lockdown really starts to sink in.
Great news on a hopeful vaccine, caused some euphoria buying, but the real effect of any vaccinations once they are allowed to begin wont be felt for several quarters. It takes a long time for 20% unemployment to right itself. And while the trillions of $ in stimulus to fight the pandemic was needed, it does NOT come without some repercussions down the road.
I do think the Big 6 canadian banks should report decent Qs here, but not as sure in the US, and i do see the USD dropping versus most currencies because of the dilution caused by Trillions of $ of stimulus.
DO the common folk really understand how big a trillion $ is? Now the US isnt the only country racking up huge stimulus bills, Europe as well is using the helicopter money method to fight the flu. Outside of CHINA the Eurozone and the US ( north america) are huge economic drivers of the world economy. When they shtudown/lockdown at the same time, and the pandemic seems to be only getting worse....well i must admit , I am just not as euphoric about the prospects as others.