Nuveen Frozen Closed End Funds Thawing?
Nuveen Investments said four taxable closed-end funds lined up financing...
to redeem $714 million of auction-rate securities that investors have been unable to sell.
The largest US manager of closed end funds said the financing will allow the funds to redeem
"all or a significant portion of each fund's outstanding auction-rate securities." including auction-rate preferred shares and auction-rate notes.
70% of closed end funds borrow money to boost returns, most by selling preferred shares on the auction-rate securities market.
The market has dried up, leaving investors money trapped in the closed end funds that use auction rate securities.
Nuveen said March 12 that its 13 taxable closed-end funds would begin buying back $4.3 billion in auction-rate securities beginning at the end of last month.
Hattip to Bloomberg.
to redeem $714 million of auction-rate securities that investors have been unable to sell.
The largest US manager of closed end funds said the financing will allow the funds to redeem
"all or a significant portion of each fund's outstanding auction-rate securities." including auction-rate preferred shares and auction-rate notes.
70% of closed end funds borrow money to boost returns, most by selling preferred shares on the auction-rate securities market.
The market has dried up, leaving investors money trapped in the closed end funds that use auction rate securities.
Nuveen said March 12 that its 13 taxable closed-end funds would begin buying back $4.3 billion in auction-rate securities beginning at the end of last month.
Hattip to Bloomberg.
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