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Are closed-end funds considering other steps to redeem auction market preferred stock?

April 26, 2017auction closed-end considering funds market preferred stock redeem steps

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Are closed-end funds considering other steps to redeem auction market preferred stock?

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Yes. To redeem auction market preferred stock and retain leverage, funds (among other things) have obtained bank loans, lines of credit, issued TOBs, engaged in reverse repurchase agreements, issued extendable notes, and sold portfolio securities.