The Traderszone Network

Published in TZ Latest News 3 November, 2017 by The TZ Newswire Staff

Avoid This Closed-End Fund Trap At All Costs

From Contrarian Outlook: Of all the things investors ask me about closed-end funds, the main one is leverage. (A close No. 2 is CEF return of capital, which I discussed in a recent article here.)

Yes, CEFs often borrow money and invest it in stocks or bonds. That scares some people, who then ask me if a leveraged CEF is safe.

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