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Why are you paying out to NYAN.B, let alone NYAN.C at all, until the NAV is repaired to 1?
By paying out dividends instead of retaining and rebuilding the NAV you are incentivizing investors to get the return of NYAN.C without bearing the appropriate amount of risk by redistributing the return that should be accuring to A & B in the form of retained earnings contained implicitly in the NYAN.C NAV. Not only does this introduce moral hazard but is also unfair and may constitute a breach of the implied terms of the NYAN group's purpose.
Only NYAN.A should be guaranteed dividends because it is guaranteed by CPA. NYAN.B should not be paying out dividends if its NAV is less than 1.
By paying out dividends instead of retaining and rebuilding the NAV you are incentivizing investors to get the return of NYAN.C without bearing the appropriate amount of risk by redistributing the return that should be accuring to A & B in the form of retained earnings contained implicitly in the NYAN.C NAV. Not only does this introduce moral hazard but is also unfair and may constitute a breach of the implied terms of the NYAN group's purpose.
Only NYAN.A should be guaranteed dividends because it is guaranteed by CPA. NYAN.B should not be paying out dividends if its NAV is less than 1.
Well said.
