Lbs.to?

[big dogie]

What is LBS.TO (I know it's the life and bank split) but I can't find any info on it other then the yeild is unbelievable, it was sold to a family member at $15 is know sitting at $2.75 there must be leverage as it isn't close to following XFN.TO.... any help?
thanks
b d

 

[squash500]

What is LBS.TO (I know it's the life and bank split) but I can't find any info on it other then the yeild is unbelievable, it was sold to a family member at $15 is know sitting at $2.75 there must be leverage as it isn't close to following XFN.TO.... any help?
thanks

LBS.to is a complicated close-end fund that is made up of bank and insurance companies. It is currently trading at its 52 week low. That's why it's currently yielding 38%. They could soon be cutting the distribution. Who knows? For more information on LBS you can go to www.bromptongroup.com. Hope this helps .

Once you get to the site. Just key in Life and Banc split corp.

 

[big dogie]

LBS.to is a complicated close-end fund that is made up of bank and insurance companies. It is currently trading at its 52 week low. That's why it's currently yielding 38%. They could soon be cutting the distribution. Who knows? For more information on LBS you can go to www.bromptongroup.com. Hope this helps .

Once you get to the site. Just key in Life and Banc split corp.

Thanks, do you have any opinion as to it's appropriateness to be in a portfolio of a old person? closed end fund is something I have no experience wth or understanding of.
cheers

b d

 

[Blue_eyes_TO]

A Closed-end fund is basically an exchange traded mutual fund. The reason it is doing more poorly then you would expect is cause it uses leverage through the issuance of preferred shares. It has a high yield now, however, what you have to looking for is the asset coverage ratio. Once the value falls below a certain level, they have to stop paying the Capital share dividend in order to protect the preferred shareholders. A lot of the split share funds have had to cut their distributions due to this "feature".

As for it's appropriateness, well that really depends on the individual. A lot of brokers sell this stuff to clients cause it gives them easy exposure to the banks. At the time they seemed like a good idea. In these markets they aren't great investments.