JGray...

If we have an additional capitulation phase the term "suck" will be insufficent.

Unfortunately we are not getting apparent support for the income premium vs cd's or treasuries and I suspect we'll get the kickin when rates begin to rise, or when inflation raises its head again.

For what its worth I sold all my levereged cef's as a lesson learned in the last interest rate cycle. The current cef's I own all use option writing as a means of income enhancement which should be vey good in volatile markets...however the market has not recognized that advantage from the get go on these cef's and have appropriated a wider discount.

I try to rationalize the market declines against the long term strength of the portfolios and thus make the assumption that the current declines yielding wide relative discounts are an anomaly. But I think I give the cef market to much credit.

I wouldn't argue that buying and selling against discounts can be profitable but that's trading not investing and I did the trading thing for 32 years in the commodity business...I  base my decisions on the quality of the portfolio and the strategy not a deviation in historical discount averages...if my chaos theory is correct then buying and selling discounts is roullette not arbitrage...but more power to you ..you all have done better than I.

I don't think there is or will be a near term exit point..until there is a solid underpinning to this market its a crap shoot. The underpinnig is a resolution to the sub-prime mess...meaning known valuations of all credit instruments and that is going to take a some time. In the meantime I'm accumulating cash instead of re-investing dividends and waiting. 

Good day and good luck