Closed-End Loan Funds Lose Their Zip

Kantin, Kerry
July 2005
Investment Dealers' Digest;7/25/2005, Vol. 71 Issue 29, p13
Trade Publication
The article reports on the degrading popularity of closed-end loan funds among the retail investors of the United States. There are a number of reasons investors are turning away from these funds, including an anticipated increase in default rates. Another possible reason could be the speculation that the Federal Reserve Board may be nearing the end of its tightening campaign. While retail investors do make up the vast majority of investors in these funds, some hedge funds and other institutional investors had positions in these funds to play the carry trade. The recent trend of discounts could put an end to the proliferation of new funds.


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