Q: Why are they consolidating the shares? They are nowhere near a delisting price.
Why do you think the market is unphased by the yield reduction. Even an anticipated cut almost always creates a drop. Occasionally a boost of course.
Why do you think the market is unphased by the yield reduction. Even an anticipated cut almost always creates a drop. Occasionally a boost of course.
5i Research Answer:
NHF is converting from a closed end fund to a REIT. While consolidation is not 'necessary' the company likely wants a stock price above $10. The REIT structure is much more popular and often gets a higher valuation than a closed-end fund so investors are more comfortable with the new yield because of this.