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DMO vs IOFIX

LewisBraham
edited March 2020 in The Bullpen
Who's right--the investors that just pounded DMO so its share price fell 25% today even if its underlying securities barely trade or the managers of IOFIX who say their portfolio only fell 2.67% today? Because if the former are right, then IOFIX is understating the risks of default in its non-agency mortgage debt and the securities should be priced much lower. But if the latter are right, then DMO is a tremendous buy selling at a massive discount to its portfolio:

https://morningstar.com/funds/xnas/iofix/quote

https://morningstar.com/cefs/xnys/dmo/quote

Because non-agencies don't price frequently it's hard to tell which is true.
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