Saturday, May 9, 2009

IGA -- Where Have All the Discounts Gone?

at the apex of the liquidity panic last October you could buy closed-end equity funds at 30 percent discounts to net asset value. at the time, I suggested ING Global Advantage and Premium Opportunity Fund (IGA), which was selling at 32 percent discount to NAV.*

well, I happened upon IGA here while looking at Friday's list of 50/200-day MA Crossovers, so I clicked over to ETFConnect to check what kind of discount the fund has currently. -2.64 percent now.

a lot of closed-end funds haven't come back as close to par as IGA, but it seems as though most of the fear discount in the market has evaporated. this is yet another indication to me that this General Liquidity Rally everyone is enjoying has mostly worked out the excessive negative sentiment that accrued during the bear market. this lack of concern is starting to concern me.

*see this post:

Saturday, October 11, 2008
Shopping for Big Discounts -- IGA