Statutory leverage ratio of CEFs?

[sam]

Let me give an example first before asking question.

In taxable portfolio where investor trade on Margin, one can calculate/simulate at which level of portfolio decline will trigger Margin Call (assuming house rules remains same, many brokerage change/increase margin requirements during market turmoil).

Many popular CEFs (such as ones from Pimco, like PDI, PFN, PFL) use quite a bit of leverage. In a market downturn will increase leverage ratio (that is assuming there is NO bond default, and in bond market default does NOT mean your investment will go to ZERO because it takes time to find out what will be eventual recovery, HERTZ comes to mind).

Q. What is statutory leverage ratio of bond CEFs which is kind of equivalent of Margin Call? One this margin call triggered do they have to sell assets (even in depressed prices) or can it done by issuing more preferred shares  or other form of credit?

I could not find out this particular information and not sure if there is fixed leverage ratio for CEFs. How and who determines CEF has broken leverage requirements?

[yogibearbull]

Regulatory limits are on asset coverage (debt as % of total assets) and vary by the type of leverage. An overleveraged CEF is forced to deleverage at a bad time.
www.nasdaq.com/articles/no-1-cef-trap-you-must-avoid-2017-11-02

But there is another issue of the volatility experienced by CEF holders. That depends on debt as % of net assets.
ybbpersonalfinance.proboards.com/post/471/thread