North American Financial 15 Split Corp T.FFN

FFN unit nav to MAy 12 = approx: $14.33

[mouserman]

Have my computer with me this time, up at the LAke property... and so can update the NAVs. Too windy today to do much outside, and definitely a boat rip on the lake is out of the question.
FFN now has lost about 25 cents off the UNIT NAV since April 29, and that leaves the commons well short of the 15$ threshhold. Quadravest will use the ominous Friday the 13th  close for the calculations  of which SPlit funds commons get distributions. The list is getting smaller, as FFN and DF wont make the cut this month, joining LFE , which is now miles out of the money.
Amazingly FFN is carrying a huge premium still.... around 37%, with no chance of paying to commons for the month of MAY.

[KnaveofDiamonds]

Seems like an easy short, ducks in a barrel. 

[BlueGuitar1]

May not be an easy short.  I have been hearing people say that after a short correction (now), a huge blow off top can occur (up 40 - 50%) in hyperinflation in the markets, followed by a huge 1929 style depression scenario.  Shorts can be killed in the blow-off top.  

[amugsgame]

A short position in the splits tends to also be short in terms of time. The high yield means that holding through dividend paying months (and having to pay the dividend) is not desireable but a position taken when the NAV is teetering on sub-$15 and covered right after the announcement of no payment can be combine low risk with hight reward.   

[AskMrMarket]

Two issues: 1. You are speaking in terms that are broadly longer than the period the short opportunity will exist. A short will not need to play out over quarters, but maybe over a month. 2. Do you think the 100% rally from March 2020 to November 2021 wasn't a blow-off top? The market won't make things obvious.  In any event, unless the financial stocks rally next week, and

[checkup]

The XLF is up 1.5%+ today .....FWTW.