Great explanation in plain English. Still don't get Blackrock's motivation. If it's to increase share price, why sell? If it's to lower share price, why not sell, then buy back when the price goes down?
Thank you. My understanding is it is to raise the price closer to the NAV and also reduces the number of shares that they have to pay the distribution on. As an investor, you could certainly sell and then buy back later. I would only take this offer if you were going to sell anyways.
@@derryckmacaulay8754yeah, they don’t really say much about why except they believe it will enhance shareholder value. “Discount Management Programs are intended to enhance long-term shareholder value by providing liquidity at or close to net asset value.”
ThanX Jeremy..... I like all your videos... Keep up the great work. Always interesting and educational. I do not know that much about CEF so this was interesting.... Maybe down the road - you could do a CEF video on good bad and ugly and why one would want to participate in a CEF vs a common stock holding.. Best suited for etc..... Thanks for your hard work and quality information. Be well...
Thanks for the feedback, I will definitely add that to the list for the future. I did a video last year “How to invest in closed end funds” that might be helpful in the meantime. Have a great day!
My dad (96) has BGY with a $8000 loss in a taxable account. Any suggestions? Take the offer and offset other gains this year?On the other hand the offer will only reduce the loss less than $1000. It is a very small amount of the portfolio.
Not advice, just some thoughts. If he was going to sell either way, take the deal so the loss is less. If he wasn’t going to sell then no reason to take the deal.
@@neilgould9018 glad it was helpful. Very cool that you found it on google, thanks for watching and subscribing. I have a few Blackrock CEFs but I am personally not doing the offer. Best of luck to your dad on his decision.
Being a dividend investor and never experienced this tender offer scenario, I’m concerned about the stability of the current dividend that is paid out monthly after the event is completed. What usually happens to the declared dividend for these funds?
was thinking the same thing. I own BTSZ for the dividend. price appreciation is an afterthought - obvi want to see it. so whats motivation to do this I suppose only makes sense if you want out and to see a premium to do so?
Thank you! You made this very understandable
@@erinkeller8660 glad it was helpful!
Exactly the information I was looking for 👍
Thanks 🙏
Glad it was helpful!
Great explanation in plain English. Still don't get Blackrock's motivation. If it's to increase share price, why sell? If it's to lower share price, why not sell, then buy back when the price goes down?
Thank you. My understanding is it is to raise the price closer to the NAV and also reduces the number of shares that they have to pay the distribution on. As an investor, you could certainly sell and then buy back later. I would only take this offer if you were going to sell anyways.
I’m trying to see what their motives are as well. Since I’ve been a bull on some of the instruments.
@@derryckmacaulay8754yeah, they don’t really say much about why except they believe it will enhance shareholder value. “Discount Management Programs are intended to enhance long-term shareholder value by providing liquidity at or close
to net asset value.”
ThanX Jeremy..... I like all your videos... Keep up the great work. Always interesting and educational. I do not know that much about CEF so this was interesting.... Maybe down the road - you could do a CEF video on good bad and ugly and why one would want to participate in a CEF vs a common stock holding.. Best suited for etc..... Thanks for your hard work and quality information. Be well...
Thanks for the feedback, I will definitely add that to the list for the future. I did a video last year “How to invest in closed end funds” that might be helpful in the meantime. Have a great day!
I very much appreciate that you explained this in an easy-to-absorb manner.
Thanks for watching and taking time to comment. Do you have any tender offers you are considering?
Great Explanation!! Thank you.
Thank you for bringing "new content"... most channels usually just repeat the same crap over and over...
Thank you for the feedback and glad you enjoyed it!
If you decide to sell your shares to Blackrock, can you then turn around and buy the fund again once you have the cash from the sale?
@@ktriebol yes, there are no restrictions. You may get a wash sale but otherwise Blackrock doesn’t care.
My dad (96) has BGY with a $8000 loss in a taxable account. Any suggestions? Take the offer and offset other gains this year?On the other hand the offer will only reduce the loss less than $1000. It is a very small amount of the portfolio.
Not advice, just some thoughts. If he was going to sell either way, take the deal so the loss is less. If he wasn’t going to sell then no reason to take the deal.
@@DividendStockpile Thanks. Google search found your video. Just what I needed to try to explain it to him. Just subscribed.
@@neilgould9018 glad it was helpful. Very cool that you found it on google, thanks for watching and subscribing. I have a few Blackrock CEFs but I am personally not doing the offer. Best of luck to your dad on his decision.
Being a dividend investor and never experienced this tender offer scenario, I’m concerned about the stability of the current dividend that is paid out monthly after the event is completed. What usually happens to the declared dividend for these funds?
The per share dividend remains the same.
was thinking the same thing. I own BTSZ for the dividend. price appreciation is an afterthought - obvi want to see it. so whats motivation to do this I suppose only makes sense if you want out and to see a premium to do so?