Dividend 15 Split Corp T.DFN

Huge volume on DFN, ATM program working hard?

[mouserman]

First hour and a half of trading and we see over 250 K shares traded.   This appears  be more volume  than the other 5 Quadravest split fund commons combined... I would imagine the ATM program working hard at buying back commons to try and get the share count imbalance between preferreds and commons back to par. Fairly big volume on the preferreds so far too, but they are heading down and not up. SO DFN managers may be selling preferreds from the treasury to increase the count. AT super low prices I might add, last @ $ 9.39 , over 100 K traded on the DFN preferreds at this point.

[mouserman]

Actaully worded that wrong, the buyback recently announced may be repurchasing shares and cancelling them from total outstanding share count. THE ATM will be working to sell more PREFERREDs to help rebalancing... This imbalance was usually done with an offering in the past, where they sold more preferreds than commons in the financing. AND of course the commons share price always took a dive on

[Mmb060]

If they back the commons at a premium, then the NAV of the common will drop.. BUT if they can buy prefs at same discount, then its a wash.. Problem is that premium/discount is not equal. Of course exterior forces may be at play, forcing DFN management to do something.

[navgod]

While not a big fan of Quadravest management I would be SHOCKED if they would be doing this at the current premium -- I am not even sure if they are allowed to purchase stock at any premium to NAV. They had a NCIB last year and not one share was purchased. On a related manner I am shocked that Quadravest has been able to issue 12 million+ shares through ATM the last four months without the premium

[Mmb060]

Selling shares at premium help keeps the NAV up.

[mouserman]

Quadravest certainly has no issues with selling shares to public at a big premium to NAV in the offerings. Only say they cant do an offering at a discount to NAV...

[EdPaquette]

Since DFN is teetering, now is a good time to mention quadruple witching is Friday.  Very likely a horrible down day. Could drop DFN below threshold. 

[AnEducator]

I had forgotten about Quadruple Witching, a traditionally high-volume event. However, given that Quadravest will use the NAV update as of the close of June 15, I fully expect a dividend declaration next week barring a Fed-induced correction on Wednesday/Thursday.