City of London (CTY), the biggest UK equity income investment trust, is more than doubling its long-term debt with £50 million of new borrowing as it becomes the latest listed fund to take advantage of ultra-low interest rates.
Although both UK and US interest are set to rise slowly from their post-financial crisis lows, investment trusts and investment companies can still secure very attractive loan rates.
City of London, a £1.4 billion flagship of Janus Henderson managed by Job Curtis, is borrowing the additional £50 million at a fixed interest rate of 2.94% for 32 years.
The article also mentions: Witan, SMT & TIGT:-
http://citywire.co.uk/investment-trust- ... der+Weekly