Dividend Declaration - Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. - July 7, 1995.NEW YORK--(BUSINESS WIRE)--July 10, 1995--The Board of Directors of the Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. (NYSE NYSE See: New York Stock Exchange :HTO) today declared a monthly dividend of $0.05416 per share. This dividend, which is payable on July 27, 1995 to shareholders of record on July 17, 1995, was lowered for the following reasons: (i) a continued flattening of the yield curve Flattening of the yield curve A change in the yield curve when the spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift. which has reduced the effectiveness of portfolio leverage, (ii) the dramatic decline in interest rates which has resulted in reinvestment of principal cash flows at lower interest rate levels, and (iii) the reduction of portfolio exposure to high yielding MBS securities, such as interest-only strips (IOs). The Trust has invested in defensive securities such as principal-only strips (POs), asset-backed securities and Treasuries, which perform well in a falling interest rate environment. This dividend represents a monthly return of 6.50% (an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate) on the Trust's initial offering of $10.00 per share. The current yield on shares of the Trust based on the NYSE closing price of $7.75 on July 6, 1995 is 8.39%, which is 236 basis points greater than the current yield on the 10-Year Treasury Note. The net asset value (NAV See navigation system and navigation bar. ) per share is currently $8.95. The Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. is a diversified closed-end management investment company. The Trust's investment objectives are to provide shareholders with a high level of current income and to return at least $10.00 per share (the Trust's initial public offering price per share) to investors on or shortly before November 30, 2005, consistent in investing in investment grade securities. Investment grade securities are securities that are either (i) at the time of investment, rated in one of the four highest rating categories of a nationally recognized rating agency (e.g., between AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. and BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. by Standard & Poor's Corporation or between Aaa and Baa by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc. or between AAA and BBB by Fitch Investors Service Fitch Investors Service A financial services company best known for the bond ratings it provides investors. , Inc.) or (ii) issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities. No assurance can be given that the Trust's objectives will be achieved. The Trust is actively managed to take advantage of relative value opportunities in various sectors of the mortgage market. The Trust is currently managed with an average duration of 6 years. Currently, the average life of the securities in the portfolio is approximately 10 years. Portfolio Breakdown as of July 6, 1995: As a percentage of investments Collateralized Mortgage Obligations (CMOs) 47.66% Multi-Family and Commercial Property CMOs 9.20% Subordinated CMOs 19.37% Municipal Securities 4.36% Asset-Backed Securities 12.34% Treasuries 5.37% Commercial IOs 1.70% The Trust's investment adviser is Hyperion Capital Management, Inc., a registered investment adviser based in New York with approximately $4 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Additional information on the Trust's assets and performance is available by calling Hyperion Fund Marketing at (800) HYPERION. CONTACT: Hyperion Fund Marketing (800) HYPERION |
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