Life & Banc Split Corp T.LBS

Alternate Symbol(s): LFBCF | T.LBS.PR.A

Life & Banc Split Corp. (the Fund) is a Canada-based mutual fund company. The Fund's investment objective is to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions and to return the original issue price on the maturity date, and to provide holders of Class A shares with regular monthly cash distributions and the opportunity for growth in Net Asset Value per Class A share. To achieve these objectives, the Fund invests in a portfolio comprised of common shares of approximately six Canadian banks and four publicly traded Canadian life insurance companies. The Fund also writes covered call options and cash-covered put options in respect of the portfolio to generate additional distributable income for the Fund and/or to reduce the volatility of the Fund. The Fund's investment manager is Brompton Funds Limited.

TSX:LBS - Post by User

Life & Banc Split Corp > Morning price gymnastics

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Comment by navgodon Oct 19, 2022 11:35am

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Post# 35033778

RE:Morning price gymnastics

You are backing up the wrong tree! Market Makers involvement in splitshares is negligible - posting the odd 100 lot to narrow the bid/offer spread is about it. Unlike ETFs there is no effort/requirement to have trading price=NAV and anyone who has observed splitshare markets can tell you the relationship moves between very wide bans. Your "example" is a glimpse of how market ignorance can lead to ridiculous conclusions.

Obscure1 wrote: When I checked a few minutes ago, the live unit NAV was down about 0.3% while the LBS share price was down 3%

Even with the 2.5x leverage for LBS, the discrepancy shows how inefficient the market is from time to time for LBS. I'm sure the discrepancy will get rectified but geez.

I'm not a trader, but the math is the math. This example is just a glimpse of how market makers (the cat) play with investors (the mouse).

In 2021, when covid was creating historical variability in the markets, Goldman Sachs' trading desk didn't have a single day of losses while piling up massive profits. Sorry for dwelling on this, but the way the market makers play retail investors is a trigger for me.