11-21-2018, 03:33 PM
I noticed that several Bond ETFs had a reverse 2:1 split effective today. HYD, EMLC, ITM
(Any fractional shares are paid in cash with capital gains/losses possible).
Before the reverse split, two of the three were no lower in price than when issued a number of year ago. They were all priced in about the $15-$30 range before the reverse split, so now are in about the $30 to $60 range.
Anybody have an idea why they would want to do this?
Seems like a waste of time unless it increases the market for the bonds somehow (Institutions?).
Just curious.
(Any fractional shares are paid in cash with capital gains/losses possible).
Before the reverse split, two of the three were no lower in price than when issued a number of year ago. They were all priced in about the $15-$30 range before the reverse split, so now are in about the $30 to $60 range.
Anybody have an idea why they would want to do this?
Seems like a waste of time unless it increases the market for the bonds somehow (Institutions?).
Just curious.