United Development Funding IV fka UDFI

[Enterprising Investor]

NexPoint Credit Strategies Fund: Options Worked (9/21/17)

Summary

•NHF is a closed-end fund sponsored by Highland Capital & NexPoint Advisors, primarily invested in below-investment-grade debt and equity with the ability to hedge risk.

•The Nexpoint Credit Strategies Fund currently yields an income-only distribution of 10.52% and trades at a discount of 7.50% to its net asset value.

•We take a look at various metrics and changes in the fund as learned from the recently published Semi-Annual Report.

•A look at leverage of the fund.

•Income Idea subscribers received a more detailed analysis along with an in-depth thoughts beyond the numbers and implementation ideas, more than 2 days ago.

[...]

In true "recovery" fashion, the fund has picked up some shares of United Development Funding IV (OTCPK:UDFI), a mortgage REIT. A failed mortgage REIT that is.

If you are not up on the news, UDFI was involved in a scandal that was made public by a hedge fund. In essence, UDFI was making loans to clients that were using those proceeds to repay loans in earlier REITs. Many believe there is still value there. From April through June, UDFI has traded from as low as $1.70 to as high as $3.70 or so. Depending on when the fund picked it up, they might have already made some money. Today, it is sitting at around $3.15.

https://seekingalpha.com/article/4108655-nexpoint-credit-strategies-fund-options-worked