{"id":5073,"date":"2010-09-09T00:00:00","date_gmt":"2010-09-09T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2010\/09\/us_closedend_funds_continue_to"},"modified":"2022-03-09T15:59:22","modified_gmt":"2022-03-09T21:59:22","slug":"us-closedend-funds-continue-to","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/us-closedend-funds-continue-to\/","title":{"rendered":"US Closed-End Funds Continue to Hold $26.4 Billion in Auction-Rate Preferred Shares, Says Fitch Ratings"},"content":{"rendered":"\n<p>Even though it\u2019s been awhile the auction-rate securities market froze in 2008, credit-ratings firm Fitch Ratings\u2019s new report says that US closed-end funds still hold $26.4 billion in auction-rate preferred shares (ARPS). Researchers say that even though this figure is a 57% drop from the $61.8 billion that was trapped in ARS in January 2008 they are still surprised by the current amount.<\/p>\n<p>While ARPS holders have obtained liquidity through many redemptions, there is still a significant amount that is outstanding. Fitch says that 61% (250) of closed-end funds continue to be leveraged with auction-rate preferred shares. This is down from the 347 in January 2008. Fitch\u2019s report is based on a review of 437 US closed-end funds\u2019 publicly available financial statements. <\/p>\n<p>Since the ARS market collapse in February 2008, closed-end funds have redeemed shares at par value via refinancing or by lowering the funds&#8217; leverage. Still others have offered to purchase the shares at below par value. 22% of the funds that Fitch reviewed has fully redeemed about $22.9 billion in ARPS, while 50% undertook partial redemptions of shares totaling $12.7 billion. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/us-closedend-funds-continue-to\/\"  title=\"Continue Reading US Closed-End Funds Continue to Hold $26.4 Billion in Auction-Rate Preferred Shares, Says Fitch Ratings\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Even though it\u2019s been awhile the auction-rate securities market froze in 2008, credit-ratings firm Fitch Ratings\u2019s new report says that US closed-end funds still hold $26.4 billion in auction-rate preferred shares (ARPS). Researchers say that even though this figure is a 57% drop from the $61.8 billion that was trapped in ARS in January 2008 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3948,3865,3949,3950,3741],"tags":[],"class_list":["post-5073","post","type-post","status-publish","format-standard","hentry","category-auction-preferred-securities","category-auction-rate-securities","category-breach-of-fiduciary-duty","category-closed-end-funds","category-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US Closed-End Funds Continue to Hold $26.4 Billion in Auction-Rate Preferred Shares, Says Fitch Ratings &#8212; Investor Lawyers Blog &#8212; September 9, 2010<\/title>\n<meta name=\"description\" content=\"Even though it\u2019s been awhile the auction-rate securities market froze in 2008, credit-ratings firm Fitch Ratings\u2019s new report says that US closed-end &#8212; September 9, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/us-closedend-funds-continue-to\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"US Closed-End Funds Continue to Hold $26.4 Billion in Auction-Rate Preferred Shares, Says Fitch Ratings &#8212; Investor Lawyers Blog &#8212; September 9, 2010\" \/>\n<meta name=\"twitter:description\" content=\"Even though it\u2019s been awhile the auction-rate securities market froze in 2008, credit-ratings firm Fitch Ratings\u2019s new report says that US closed-end &#8212; September 9, 2010\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"US Closed-End Funds Continue to Hold $26.4 Billion in Auction-Rate Preferred Shares, Says Fitch Ratings &#8212; 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