No. of Recommendations: 0
Closed end bond funds have the advantage that the total number of shares outstanding is fixed. Hence, the price is determined not by NAV but by market forces.

Thanks for the nice description of closed end funds. Can you expand more on this point? For instance, Morningstar says that NQS has a discount of -10.58%, with a NAV of $15.47 and a market price of $13.97. Presumably the discount represents this difference between NAV and market price (although I can't get the math to work exactly right, maybe the discount is calculated from a market price a day earlier or something, but it seems roughly correct).

Is a discount like this a Good Thing or a Bad Thing? How do I interpret it? Is it large relative to other closed end funds? Do discounts tend to grow/shrink in various interest rate environments?
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.