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In fact, the average closed-end equity fund discount is smaller today than it was at the top of the stock market in early 2000.
The average closed-end fund discount was 6.7 percent at the end of September, according to Morningstar, meaning that every $100 of assets could be bought for just over $93.
Thus, we expect a negative relation between the closed-end fund discount and sentiment.
(2012): CEFD (closed-end fund discount), NIPO (number of IPOs), TV (turnover), and VP (volatility premium).
After removing outliers, we compute the net-asset-value-weighted average closed-end fund discount in each market.4.
(2012) is the closed-end fund discount (CEFD), i.e., the discount (or premium) if the closed-end fund is trading below (above) its net-asset value.
Similar(53)
A chunk of the money raised would be used to fund discounts of up to £103,900 for housing association tenants who want to buy their homes.
The negative sentiment that sends asset valuations lower also tends to widen fund discounts, hurting existing holders but creating especially strong bargains for new ones.
Between now and 2020, councils also face having to sell off higher-value council homes in order to fund discounts on housing association homes that are due to come in under right-to-buy provisions.
The lower figure of £1.2bn would fund only half the amount needed for right to buy discounts and although the higher estimate of £2.2bn would fund discounts in full there would be no money left over to replace the sold properties.
Caution: Nowadays muni fund discounts are already narrow.
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