Post by
mouserman on Nov 26, 2020 6:16pm
DFN unit NAV to Nov 26 = APPROX. 15.79
I am taking into account 16% in cash for DFN as per last update, so we only get a gain of .59 since the midmonth update.
DFN commons trading at 1.14 premum to NAV, before distributions. After distributions it would be 1.28 or so...
SO this means a 20 % premium before distributions...
There was plenty of opportunities for covered call option plays in the past month or so, and it will be interesting to see what kind of cash holding DFN has , and if the weightings have changed.
LBS unit NAV $1.17 higher than DFN, but trades lower. Throw logic out the window when you compare them.
Comment by
petebrown1963 on Nov 26, 2020 8:53pm
The problem with LBS is the poor diversification compared to DFN. It is banks and lifecos only. That is too much interest-rate related risk for most investors. DFN is more diversified and less tied to rates. This explains the historical difference in premium to NAV between the two.
Comment by
mouserman on Nov 27, 2020 9:24am
You do know that the biggest moves in DFN the past month have been the banks/lifecos? Without those , DFN would be right at the threshhold for paying. To each his own, but i would buy LBS at a discount to NAV, with the UNIT NAV at 16.98...as compared to buying DFN at a huge 20% premium with a UNIT NAV around 15.79
Comment by
bubba9 on Nov 29, 2020 6:14pm
May sound odd but it is the non-diversification and concentration on FIs that draws me to this fund. Div is a bonus. Banks will lead the recovery...