RE: This discount to NAV makes no sense?17 Nov 2023 14:38
Thanks - sounds plausible. Liquidity does seem to be a major factor here. Average volume has been in the low 100k's for a while & it only took £1m or so of share repurchases to take the share price back to the high 40's so can only imagine what impact a larger volume of buying combined with lower selling activity will have. Given the cash is likely to only last 12 -18 months (and dilution of holdings becomes a real risk), the wildcard here seems to be how quickly and how much interest rates are lowered (and where the end up holding). If they settle at a rate of 2-3ish%, is the trust still going to be trading at a discount & unable to capital raise?