Professional and efficient, their proprietary model yielded a thorough and well documented valuation of my student loan auction rate security portfolio...

Bryan Rivers
The Seibels Bruce Group, Inc.

Closed-End Fund ARS

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Closed-end mutual funds issue Auction Rate Preferred Shares (also referred to as ARPS or auction preferred shares (APS)) to enhance returns for their common shareholders. Closed-end funds may be unable to refinance (and redeem their ARPS at par) with debt, if doing so would clearly disadvantage their common shareholders. In addition, leverage requirements may in some cases be stricter for debt financing than for preferred equity financing. Nevertheless, many closed-end funds announced plans, shortly after auctions began failing, to refinance and redeem their ARPS.