NRO - Looks like to leverage their fund they raised capital through issuing low interest auction market preferred shares(AMPS). The market for those has dried up so now they must buy back those securities back through redemption request. This will deleverage the fund and reduce gains. I guess the big question is how much they will reduce the dividends which is knocking the shares back. Some similar funds have had to cut the dividend completely. But, once the AMPS are all bought bcak, then the dividend will come back.
NRO had liquidation value on the AMPS on Sep 29th of $473 mil. That compares to total fund investments of $1,378 mil, and net assets of $669 mil.
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