The secondary market for closed-end funds (CEFs) is a market place where shares of mostly fully placed CEFs are traded. In addition to traditional procurement by issuing houses (mostly represented by their trust companies), stock market-related and privately organized trading platforms have emerged recently. Buyers in the CEF secondary market are private investors, as well as institutional investors.
The CEF secondary market has been growing for years. The still low market liquidity and low degree of transparency in determining prices offer lucrative opportunities for experienced buyers.
Steinfest GmbH carries out an extensive secondary market analysis. In the analysis we evaluate bidprices, the underlying CEF structure and the underlying fund asset(s) in order to detect any possible market inefficencies from which our customers might benefit.