Hello,
Sad more people aren't on this forum.
1. Highland Floating Rate Fund, key word: floating - rates on loans held by the fund are going down (they float) and will continue to do so.
2.The paper value of the loans held by the fund are worth less because of 1. and the fact there is a lot of paper out there for sale.
3. We should have all realized this was going to happen and gotten out much earlier. I hoped we would not see the big drop. The value of the fund is based on a daily independent audit.
4. The 15th is the only day to sell, you must have your order in place. Must be done by broker. Beware they do not have to honor your sale/buy back request. They have X dollars for buy backs, set aside, if it is exceeded, your order will not be filled.
This was a very good performing fund, but it is now caught in the interest/bank/credit shake out. The managers have done a very poor job defending the fund, maybe they can't!
These are unusual times and call for unusual actions.
I called them, and talked about the fund. My thoughts.
Will it come back? Yes. Will drop more, I think so.
Hope this helps with your planning. I'm eating several thousand dollars even after the payouts. But I realize I made the mistake of not selling earlier. Only you can manage your money, sad to say.
Best of luck.