Projected June Dividend For CEFL Will Bring Yield To 18.1%
Published May 26, 2014 on Seeking Alpha

UBS ETRACS Monthly Pay 2x Leveraged Closed-End Fund ETN (CEFL) will soon declare a monthly dividend for June 2014. There are 30 components that comprise the index upon which CEFL is based. As is shown in the table below, of those 30, there are 8 that pay dividends quarterly, while the other 22 pay dividends monthly. Only one of the 8 quarterly payers, BlackRock Global Opportunities Equity Trust (BOE) went ex-dividend in May 2014. Thus, it will be the only one of the 8 included in the June 2014 CEFL monthly dividend. The mix of monthly and quarterly dividends creates a "big month/small month" phenomena similar to that described in 30% Yielding MORL, MORT And The mREITs: A Real World Application And Test Of Modern Portfolio Theory. However, the phenomena is much less pronounced for CEFL than for ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN... Read more