
CEF Weekly Review: Rights Offerings Face Rising Price Volatility
âĒBy ADMIN
Related Stocks:CEF
In the latest snapshot of the closedâend fund market, the week through the end of October saw gains across sectors â but it wasnât all smooth sailing. The spotlight is on rights offerings, which are increasingly colliding with elevated price volatility.
While discounts across many funds remain wider than usual, several funds initiating rights offers are seeing their share prices swing as investor sensitivity heightens. The interplay between dilution risk (from the new shares issued via the rights) and underlying fund performance is creating a tug of war. For incomeâoriented investors in closedâend funds, the message is clear: rights offerings deserve extra scrutiny amid a market environment thatâs less tolerant of uncertainty.
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