North American Financial 15 Split Corp T.FFN

NAV March 31

[AnEducator]

So I have the closing value at $13.64, a penny higher than the last update on March 15th. The capital shares closed $0.68 above actual value. Keep in mind I have not accounted for any dividends earned by the portfolio. The portfolio needs to rise by approximately 10% to kiss the payment threshold.

[mouserman]

The UNIT NAV will  have decreased by 6.45 cents on ex-dividend date to account for the preferreds, which always get paid. Yield on those now is approaching 8.25%,annually,  buying at todays price. I do believe we may see another consolidation on FFN, as the number of commons is again over 1.3 million higher that the preferreds. Especially if the US banking sector gets another scare like

[Markyp]

Can you explain what a consolidation is?

[Splitfunding]

I'm not an expert at split funds but from what I understand it occurs when the common shares become far overvalued. It happened to FTN at the last ermination date. The shares were consolidated at a 2.5 to 1 ratio and basically lost 60% of their value. It would take several years of study dividend payments to make up for that capital loss if you bought in at the funds usual value. It's

[Markyp]

Wow I didn't know that. I'm new and learning about the split funds. I'm out of ffn commons and put some into preferreds now since it has a good discount.

[Nakate]

osp is currently consolidating and it has been a laggard for many months, watch that to see how it goes Brompton Oil Split Corp. intends to effect a consolidation of its Class A shares. As a result of the special non-concurrent retraction granted in connection with the extension of the maturity date of the fund to March 28, 2024, there will be 950,914 Class A shares and 822,414 preferred shares

[EdPaquette]

By my calculations, osp still won't have a nav over 15.  What a halfway consolidation? 

[Splitfunding]

Yeah I didn't know that either for years while trading them until it happened to ftm. Thankfully I bought post pandemic so I didn't lose anything but I would've bought something else instead. If not for the possibility of consolidation split funds would be both the perfect trading and the best dvivy payers of all time. But this 'flaw' makes it makes it more risky. I was going

[flamingogold]

I hold FFN preferreds. I did not own any FTN when they consolidated, but from the PR (late 2020), the commons consolidated but I don't see that the preferreds did. I do see that the preferreds saw a distribution rate bump of about 20%. So, if FFN commons do consolidate in the same mannner as FTN, then the preferreds could possibly benefit. Can anyone confirm this?

[AnEducator]

The spike in the preferreds was almost entirely due to the massive increase in the capital share NAV as a result of the consolidation. The preferreds became a much safer investment due to the increase in downside protection which was perilously low prior to the event.

[mouserman]

I do believe consolidation can only happen on the expiration month of the UNITS. So last FFN consolidaton was  DEC 2019.... FTN consolidation was actually a reorganization in 2020 as their expiration date was different. Financial 15 Split Corp. Reorganization, Increased Preferred Dividends Toronto, Ontario – November 19, 2020 / GNW: Financial 15 Split Corp. (the

[alkhor]

The important part of the news release was "the impact of increasing the asset coverage ratio for the Preferred shares" Holding the preferred shares now have little downside but a lot of upside, while collecting a dividend at the same time.

[mouserman]

For sure i agree it is a nobrainer to have FFN.pr.a and short the commons as a good investment strategy...collect a 8.25% distribution and make some capital gains on the hugely overvalued common shares. Not sure how Qudarvest is going to deal with the fact that there are more common shares out than preferreds at this time. On of the problems with an ATM program. Almost impossible to force

[mouserman]

So Quadravest updated and showed FFN with UNIT NAV @$13.66 to March 31, and quite a few dividends collected likley the difference.  Great job.