Intermediate
How leverage magnifies gains and losses
Leverage gives common shareholders exposure to more assets than their own capital alone would buy. It magnifies portfolio movements and adds financing costs.
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Closed End Funds Investment Guide
Understand closed end funds, investigate discounts and distributions, and build a disciplined research process. Follow eight stages from ownership and market pricing to portfolio construction and advanced analysis.
Start with What you own in a closed end fund, then follow the next lesson links. Explore 32 lessons with worked examples, exercises and further reading.
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Leverage and Portfolio Risks · All lessons
Leverage and Portfolio Risks
Investigate borrowing, interest rates, credit and underlying strategies.
Intermediate
Borrowing costs and forced deleveraging
Borrowing can become more expensive even before the portfolio loses value. Falling assets can also force a fund to shrink leverage at an unfavorable time.
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Intermediate
Duration, credit and municipal bond fund risks
A bond fund’s distribution can look steady while the value of its assets changes substantially. Duration, credit quality and concentration explain different parts of that risk.
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Intermediate
Equity strategies, covered calls and currency exposure
Equity income funds can combine stocks, option writing and foreign currency exposure. Each component changes how portfolio returns behave.
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