Wednesday, April 16, 2008

Van Campen to redeem a portion of its auction-rate preferred securities (ARPS)

There was yet another modest ray of sunlight penetrating the auction-rate securities (ARS) gloom today as Van Kampen announced that it would redeem about 50% of the oustanding holdings of the Van Kampen Senior Income Trust. This is a very modest move, redeeming $350 million of a $700 million fund, but with the bulk of the ARS market frozen, every little helps.

The allocation may be a bit odd. The distribution of funds to broker-dealers will be on a pro rata basis, but it is up to the individual broker-dealers to decide how they choose to allocate to individual customers. They may choose to distribute on a pro rata basis as well, but are not obligated to.

See the Business Wire press release entitled "Van Kampen Senior Income Trust Announces Refinancing of Auction-Rate Preferred Securities."

-- Jack Krupansky

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