Biotech Values

[Jonathan Robinson]

True in the short run; however, the auction-rate loans must be repaid at some point. If not enough new buyers step up to the plate in future auctions, the loans will eventually have to be repaid by selling portfolio bonds for whatever they will bring.

Still not an NAV issue as they must be marked to market in NAV anyway. Now the selling itself could drop NAVs of all the funds, but that hits both levered and unlevered funds. The impact will be greater on the levered funds of course.

Jon