Claymore Securities, Inc. (“Claymore”),
a leading financial services company offering unique investment
solutions for financial advisors and their valued clients, today
provided an update on developments in the market for auction-rate
preferred securities (“ARPS”)
issued by Claymore’s closed-end funds.
Recent announcements by various broker-dealers agreeing to buy back ARPS
should be viewed as a positive development for ARPS shareholders,
although significant challenges remain. Claymore continues to pursue an
effective long-term solution to the current illiquidity of closed-end
fund ARPS. In spite of remaining challenges amidst the unprecedented
disruption in the overall credit markets, progress continues to be made.
As announced in a press release dated May 2, 2008, two closed-end funds
serviced by Claymore secured financing to redeem a majority of their
ARPS. The partial redemption was completed in June in an amount that
equates to approximately 27% of the total value of ARPS outstanding for
Claymore’s closed-end funds. Additionally, we
continue to examine the potential restructuring of ARPS as well as
alternative forms of leverage, while carefully assessing the potential
short- and long-term impact to both common and preferred shareholders.
Further information regarding ARPS, including current rates and periodic
updates, may be found online at www.claymore.com/CEFs.
Claymore Securities, Inc. is a privately-held financial services company
offering unique investment solutions for financial advisors and their
valued clients. Claymore entities have provided supervision, management,
servicing and/or distribution on approximately $18.4 billion in assets,
as of June 30, 2008. Claymore currently offers closed-end funds, unit
investment trusts and exchange-traded funds. Registered investment
products are sold by prospectus only and investors should read the
prospectus carefully before investing.
The opinions referenced are as of the date of publication and are
subject to change due to changes in the market or economic conditions
and may not necessarily come to pass. Information contained herein
should not be considered investment advice.
Investors should consider the investment objectives and policies,
risk considerations, charges and expenses of any investment before they
invest. For this and more information, please contact a securities
representative or Claymore Securities, Inc., 2455 Corporate West Drive,
Lisle, Illinois 60532, 800-345-7999.
Member FINRA/SIPC (08/08)
(NYSE: AGC, AVK, DCS, FFC, FLC, MZF, TYW)
NOT FDIC-INSURED | NOT BANK-GUARANTEED |
MAY LOSE VALUE
Press and Analyst Inquiries:
Claymore Securities, Inc.
William
T. Korver
wkorver@claymore.com
630-505-3700
