Fitch Publishes Report Comparing Leverage in UK ITs and US CEFs

May 15, 2015 8:55 AM

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(The following statement was released by the rating agency) LONDON, May 15 (Fitch) Fitch Ratings has published a special report that analyses and compares the use of leverage in UK investment trusts (ITs) against US closed-end funds (CEFs).

ITs on average employed gross leverage of 9% at end-March 2015, which is low compared with US taxable CEFs that used on average 25% leverage, while US municipal CEFs use higher levels still. Fitch estimates ITs used a total of GBP6bn of leverage as of end-March 2015, a fraction of the absolute size ...

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