Dividend Declaration Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. - Jan. 13, 1995.NEW YORK--(BUSINESS WIRE)--Jan. 13, 1995--Dividend Declaration Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. - Jan. 13, 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 new monthly dividend of $0.05833 per share. The dividend which is payable on Jan. 30, 1995, to shareholders of record on Jan. 23, 1995, was lowered due to the decreased benefit of leverage caused by an increased cost of financing attributable to the increase in the Federal Funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. of the past year. This dividend represents a monthly return of 7.0% (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 price of $10.00 per share. This change in dividend rate is the first such change by the Trust in over a year. The current yield on shares of the Trust based on the NYSE closing price of $7.125 on Jan. 12, 1995 is 9.82%, which is 203 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 $8.11. 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 Nov. 30, 2005. All securities in which the Trust invests will be 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. 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 5 to 7 years. Currently the average life of the securities in the portfolio is approximately 8 years. Portfolio Breakdown as of Jan. 12, 1995: As a percentage of investments Mortgage-Backed Securities 15.5% Collateralized Mortgage Obligations (CMOs) 48.5% Multi-Family and Commercial Property CMOs 11.3% Subordinated CMOs 10.2% Municipal Securities 4.4% Asset-Backed Securities 1.7% Interest-Only Securities (IOs) 1.9% PAC IOs 3.0% Treasuries 3.5% 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 or by calling Prudential Mutual Fund Management, Inc. (212) 214-3334. CONTACT: Hyperion 2005 Investment Grade Opportunity Term Trust Hyperion Fund Marketing, (800) HYPERION or Prudential Mutual Fund Management, Inc., (212) 214-3334 |
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