| N-2 | 12 Months Ended |
| Oct. 31, 2024 | |
| Prospectus [Line Items] | |
| Document Period End Date | Oct. 31, 2024 |
| Cover [Abstract] | |
| Entity Central Index Key | 0001557523 |
| Amendment Flag | false |
| Entity Inv Company Type | N-2 |
| Document Type | N-CSR |
| Entity Registrant Name | PRINCIPAL REAL ESTATE INCOME FUND |
| General Description of Registrant [Abstract] | |
| Investment Objectives and Practices [Text Block] | Investment Objective. Principal Investment Strategies. Under normal market conditions, the Fund will invest at least 80% of its total assets in commercial real estate-related securities, primarily consisting of commercial mortgage-backed securities (“CMBS”) and other U.S. and non-U.S. real estate-related securities (primarily real estate investment trusts (“REITs”) or REIT-like entities). Under normal circumstances, the Fund will invest between 40% and 70% of its total assets in CMBS and will invest between 30% and 60% in other real estate-related securities (including REITs). A CMBS is a type of mortgage-backed security that is secured by a loan (or loans) on one or more interests in commercial real estate property. REITs are pooled investment vehicles that invest in income producing real estate, real estate-related loans, or other types of real estate interests. The Fund will invest in CMBS and other real estate-related securities at new issuance and in the secondary market which the Fund’s investment subadviser, Principal Real Estate Investors, LLC (“PrinREI”), believes will generate attractive risk- adjusted current yields and the potential for capital appreciation for the Fund. The Fund will limit its investments in CMBS to issuers organized in the United States. The Fund will invest in REITs and other real estate-related securities of issuers organized in a number of countries, including the United States. The Fund may invest in both investment grade and below investment grade debt securities (i.e., “junk bonds”). With respect to CMBS deals issued prior to 2009, the Fund may only invest in CMBS securities originally rated no lower than “A-” by Standard & Poor’s Financial Services LLC (“S&P”) or Fitch Ratings, Inc., (“Fitch”), or “A3” by Moody’s Investors Service, Inc. (“Moody’s”). In addition and also with respect to CMBS deals prior to 2009, it is expected that the Fund will invest no more than 20% of its total assets in CMBS securities originally rated lower than “AAA” by S&P or Fitch, or “Aaa” by Moody’s. No investment in an individual CMBS bond may comprise 10% or more of the Fund’s total assets. The Fund’s net asset value will vary and its distribution rate may vary and both may be affected by numerous factors, including changes in the market spread over a specified benchmark, market interest rates and performance of the broader equity markets. Fluctuations in net asset value may be magnified as a result of the Fund’s use of leverage. An investment in the Fund may not be appropriate for all investors. Use of Leverage The Fund generally will seek to enhance the level of its cash distributions to holders of Common Shares (“Common Shareholders”) through the use of leverage, which may include Borrowings (as defined below), the issuance of preferred shares, and the use of derivatives or certain investment techniques. Under normal market conditions, the Fund’s policy is to utilize leverage through Borrowings and the issuance of preferred shares (if any) in an amount that represents approximately 33 1/3% of the Fund’s total assets, including proceeds from such Borrowings and issuances (or approximately 50% of the Fund’s net assets). However, based on market conditions at the time, the Fund may use such leverage in amounts that represent less than 33 1/3% of the Fund’s total assets. “Borrowings” are defined as: amounts received by the Fund pursuant to loans from banks or other financial institutions; amounts borrowed from banks or other parties using reverse repurchase agreements; or amounts received by the Fund from the Fund’s issuance of any senior notes or similar debt securities. Other than with respect to reverse repurchase agreements, Borrowings do not include trading practices or instruments that, according to the SEC or its staff, may cause senior securities concerns. The Fund currently leverages through the use of bank borrowings, but may use other similar term loans and/or reverse repurchase obligations. In connection with the Fund’s use of leverage, PrinREI may seek to hedge the associated interest rate risks through derivative instruments, which may include interest rate swaps, caps, floors, collars, rate forwards and interest rate futures (and options thereon). PrinREI is not required to engage in any hedging techniques, and there can be no assurance that any interest rate hedging transactions, if undertaken, will be successful, and such transactions may adversely affect the Fund’s achievement of its investment objective. There is no guarantee that the Fund will engage in hedging transactions. |
| Risk Factors [Table Text Block] | Risks Investment and Market Risk Risks Associated with Investment in Commercial Real Estate Loans. ● Declines in the value of real estate; ● Declines in rental or occupancy rates; ● Risks related to general and local economic conditions; ● Dependency on management skills of the borrower or third-party property management firm; ● Risk depending on the timing of cash flows from the underlying mortgage properties; ● Possible lack of available mortgage funds to refinance the mortgage loans at maturity; ● Overbuilding; ● Extended vacancies in properties; ● Increases in property taxes and operating expenses, including energy costs; ● Changes in zoning laws and other governmental rules, regulation and fiscal policies; compliance with existing legal and regulatory requirements, including environ-mental controls and regulations; ● Risks related to the ability of a property to attract and retain tenants, including those listed in this section, as well as the ability of a property owner to pay leasing commissions, provide adequate maintenance and insurance, pay tenant improvement costs and make other tenant concessions; ● Expenses incurred in the cleanup of environmental problems; ● Costs and delays involved in enforcing rights of a property owner against tenants that default under the terms of leases or seek protection of bankruptcy laws; ● Risks related to the type and use of a particular commercial property, e.g., hospitals, nursing homes, hospitality properties and other property types; ● Casualty or condemnation losses, including where liability and casualty insurance does not provide full protection; ● Changes in interest rates, tightening lending standards and the availability of credit to refinance such loans at or prior to maturity; ● Changes in tax laws; ● Terrorist threats and attacks; ● Social unrest and civil disturbances; and ● Weather and other acts of God. The above factors may impact the ability of a borrower to meet its obligations on the loan. Certain loans may default which could result in either a foreclosure of the property or a restructure of the loan. Such actions may impact the amount of proceeds ultimately derived from the loan, and the timing of receipt of such proceeds may be shorter or longer than the original term of the loan. Losses on the loans will negatively impact the most subordinate CMBS classes first. Any proceeds received from the loans will generally be applied to the most senior bonds outstanding before any payments are made to the subordinate bonds. The occurrence of defaults and losses on the loans may result in downgrades of the CMBS by the NRSROs. In addition the following risks apply to investments in CMBS (several of which also apply more generally to investments in debt securities and other asset-backed securities): Credit Quality and Selection. As a result, the quality of the CMBS is dependent upon the selection of the commercial mortgages for each issuance and the cash flow generated by the commercial real estate assets. Risk factors related to the foregoing include: ● Potential lack of diversification in certain CMBS issuances; ● Dependence on the skills, decision-making and experience of the various issuers in selecting the commercial mortgages backing the issuances; and ● Adverse borrower selection within an issuance. Amortization, Refinance or Sale . Lack of Sufficient Investment Opportunities Lack of Operating Control of Underlying Investments . Lack of Control Over CMBS . Due Diligence Risks of CMBS. Credit Ratings — Rating Agencies . Use of Credit Rating . Risks Associated with the Insolvency of Obligations Backing CMBS . Risks Associated with Interest Shortfall s Risks Associated with Prepayment Risks Associated with Extensions. Reinvestment Risk Risks Associated with the Servicers Risks Associated with Structured Securities Risks Associated with the Limited Liquidity of CMBS Risks Associated with Interest Rate Movements. “Spread Widening” Risk Risks Associated with Hedging Over-the-counter derivatives transactions are also subject to counterparty risk. The Fund’s use of derivatives or other hedging transactions may be limited by legal and regulatory requirements applicable to the Fund or PrinREI. Tax Risk Relating to Investments in Certain REMICs . In addition, if the Fund realizes excess inclusion income and allocates it to Common Shareholders, this income cannot be offset by net operating losses of the Common Shareholders. If the Common Shareholder is a tax-exempt entity and not a disqualified organization, then this income would be fully taxable as unrelated business taxable income under Section 512 of the Code. If the Common Shareholder is a foreign person, it would be subject to U.S. federal income tax withholding on this income without reduction or exemption pursuant to any otherwise applicable income tax treaty. Risks Associated with Tax Code or Accounting Changes Below Investment Grade Securities Risk. Real Estate-Related Securities Risk ● the burdens of ownership of real property; ● general and local economic conditions (such as an oversupply of space or a reduction in demand for space); ● the supply and demand for properties (including competition based on rental rates); ● energy and supply shortages; ● fluctuations in average occupancy and room rates; ● the attractiveness, type and location of the properties and changes in the relative popularity of commercial properties as an investment; ● the financial condition and resources of tenants, buyers and sellers of properties; ● increased mortgage defaults; ● the quality of maintenance, insurance and management services; ● changes in the availability of debt financing which may render the sale or refinancing of properties difficult or impracticable; ● changes in building, environmental and other laws and/or regulations (including those governing usage and improvements), fiscal policies and zoning laws; ● changes in real property tax rates; ● changes in interest rates and the availability of mortgage funds which may render the sale or refinancing of properties difficult or impracticable; ● changes in operating costs and expenses; ● energy and supply shortages; ● uninsured losses or delays from casualties or condemnation; ● negative developments in the economy that depress travel or leasing activity; ● environmental liabilities; ● contingent liabilities on disposition of assets; ● uninsured or uninsurable casualties; ● acts of God, including earthquakes, hurricanes and other natural disasters; ● social unrest and civil disturbances, epidemics, pandemics or other public crises; - terrorist attacks and war; ● risks and operating problems arising out of the presence of certain construction materials, structural or property level latent defects, work stoppages, shortages of labor, strikes, union relations and contracts, fluctuating prices and supply of labor and/or other labor-related factor; and ● other factors which are beyond the control of the Adviser and its affiliates. In addition, the Fund’s investments will be subject to various risks which could cause fluctuations in occupancy, rental rates, operating income and expenses or which could render the sale or financing of its properties difficult or unattractive. For example, following the termination or expiration of a tenant’s lease, there may be a period of time before the Fund will begin receiving rental payments under a replacement lease. During that period, the Fund will continue to bear fixed expenses such as interest, real estate taxes, maintenance and other operating expenses. In addition, declining economic conditions may impair the Fund’s ability to attract replacement tenants and achieve rental rates equal to or greater than the rents paid under previous leases. Increased competition for tenants may require the Fund to make capital improvements to properties which would not have otherwise been planned. Ultimately, to the extent that the Fund is unable to renew leases or re-let space as leases expire, decreased cash flow from tenants will result, which could adversely impact the Fund’s operating results. REIT-Related Risk. Risks Associated with Direct Ownership of Real Estate Loans. Commercial Mortgage Loans Commercial mortgage loans are generally viewed as exposing a lender to a greater risk of loss through delinquency and foreclosure than lending on the security of single-family residences. The ability of a borrower to repay a loan secured by income-producing property typically is dependent primarily upon the successful operation and operating income of such property (i.e., the ability of tenants to make lease payments, the ability of a property to attract and retain tenants, and the ability of the owner to maintain the property, minimize operating expenses, and com-ply with applicable zoning and other laws) rather than upon the existence of independent income or assets of the borrower. Most commercial mortgage loans provide recourse only to specific assets, such as the property, and not against the borrower’s other assets or personal guarantees. Commercial mortgage loans generally do not fully amortize, which can necessitate a sale of the property or refinancing of the remaining “balloon” amount at or prior to maturity of the mortgage loan. Accordingly, investors in commercial mortgage loans bear the risk that the borrower will be unable to refinance or otherwise repay the mortgage at maturity, thereby increasing the likelihood of a default on the borrower’s obligation. Exercise of foreclosure and other remedies may involve lengthy delays and additional legal and other related expenses on top of potentially declining property values. In certain circumstances, the creditors may also become liable upon taking title to an asset for environmental or structural damage existing at the property. Subordination of Investments Mezzanine Loans B-Notes and A/B Structures Bridge Financings Concentration Risk Credit Risk. ` Pricing Risk Secondary markets may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may prevent the Fund from being able to realize full value and thus sell a security for its full valuation. This could cause a material decline in the Fund’s net asset value. Excise Tax Risk. Asset-Backed Securities Risks Payments of principal and interest on asset-backed securities may be dependent upon the cash flow generated by the underlying assets backing the securities and, in certain cases, may be supported by some form of credit enhancement. The degree of credit enhancement provided for each issue is generally based on historical information respecting the level of credit risk associated with the underlying assets. Delinquency or loss in excess of that anticipated or failure of the credit enhancement could adversely affect the return on an investment in such a security. The value of the securities also may change because of changes in interest rates or changes in the market’s perception of the creditworthiness of the servicing agent for the loan pool, the originator of the loans or the financial institution providing the credit enhancement. Additionally, since the deterioration of worldwide economic and liquidity conditions that became acute in 2008, asset- backed securities have been subject to greater liquidity risk. Asset-backed securities are ultimately dependent upon payment of loans and receivables by individuals, businesses and other borrowers, and the Fund generally has no recourse against the entity that originated the loans. The yield characteristics of the asset-backed securities in which the Fund may invest differ from those of traditional debt securities. Among the major differences are that interest and principal payments are made more frequently on asset-backed securities (usually monthly) and that principal may be prepaid at any time because the underlying assets generally may be prepaid at any time. As a result, if the Fund purchases these securities at a premium, a prepayment rate that is faster than expected will reduce their yield, while a prepayment rate that is slower than expected will have the opposite effect of increasing yield. Conversely, if the Fund purchases these securities at a discount, faster than expected prepayments will increase, while slower than expected prepayments will reduce, the yield on these securities. Because prepayment of principal generally occurs during a period of declining interest rates, the Fund may generally have to reinvest the proceeds of such prepayments at lower interest rates. Therefore, asset-backed securities may have less potential for capital appreciation in periods of falling interest rates than other income-bearing securities of comparable maturity. The availability of asset-backed securities may be affected by legislative or regulatory developments. It is possible that such developments may require the Fund to dispose of any then-existing holdings of such securities. Repurchase Agreement Risk. Risks Related to the Fund’s Use of Leverage If the Fund utilizes leverage in the form of borrowing, the money borrowed for investment purposes will incur interest based on shorter-term interest rates that would be periodically reset. So long as the Fund’s portfolio provides a higher rate of return, net of expenses, than the interest rate on borrowed money, as reset periodically, the leverage may cause the holders of Common Shares to receive a higher current rate of return than if the Fund were not leveraged. If, however, long-term and/or short-term rates rise, the interest rate on borrowed money could exceed the rate of return on securities held by the Fund, reducing return to the holders of Common Shares. There is no assurance that a leveraging strategy will be successful or that it will be used. Leverage involves risks and special considerations for Common Stockholders, including: ● the likelihood of greater volatility of NAV, market price and dividend rate of the Common Shares than a comparable portfolio without leverage; ● the risk that fluctuations in interest rates on borrowings or on short-term debt or in the interest or dividend rates on any debt securities or preferred shares that the Fund must pay will reduce the return to the Common Stockholders; ● the effect of leverage in a declining market, which is likely to cause a greater decline in the NAV of the Common Shares than if the Fund were not leveraged, may result in a greater decline in the market price of the Common Shares; ● when the Fund uses financial leverage, the investment management fees payable to the Adviser and the subadvisory fees payable by the Adviser to the Subadviser will be higher than if the Fund did not use leverage. This may create a conflict of interest between the Adviser and the Subadviser, on the one hand, and the holders of Common Shares, on the other; and ● leverage may increase operating costs, which may reduce total return. The use of leverage will require the Fund to segregate assets to cover its obligations (or, if the Fund borrows money or issues preferred shares, to maintain asset coverage in conformity with the requirements of the 1940 Act). While the segregated assets will be invested in liquid securities, they may not be used for other operational purposes. Consequently, the use of leverage may limit the Fund’s flexibility and may require that the Fund sell other portfolio investments to pay Fund expenses, to maintain assets in an amount sufficient to cover the Fund’s leveraged exposure or to meet other obligations at a time when it may be disadvantageous to sell such assets. Certain types of borrowings by the Fund may result in the Fund being subject to covenants in credit agreements relating to asset coverage and portfolio composition requirements. The Fund may be subject to certain restrictions on investments imposed by guidelines of one or more rating agencies, which may issue ratings for the short-term debt securities or preferred shares issued by the Fund. These guidelines may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the 1940 Act. The Subadviser does not believe that these covenants or guidelines will impede it from managing the Fund’s portfolio in accordance with the Fund’s investment objective and policies if the Fund were to utilize leverage. Risks Associated with Swap Transactions There are risks in the use of swaps. Swaps could result in losses if interest or foreign currency exchange rates or credit quality changes are not correctly anticipated. Total return swaps could result in losses if the reference index, security, or investments do not perform as anticipated. Total return swaps involve an enhanced risk that the issuer or counterparty will fail to perform its contractual obligations. Total return swaps may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on the full notional amount of the swap. To the extent the Fund enters into a total return swap on equity securities, the Fund will receive the positive performance of a notional amount of such securities underlying the total return swap. In exchange, the Fund will be obligated to pay the negative performance of such notional amount of securities. Therefore, the Fund assumes the risk of a substantial decrease in the market value of the equity securities. The use of swaps may not always be successful; using them could lower fund total return, their prices can be highly volatile, and the potential loss from the use of swaps can exceed the fund’s initial investment in such instruments. Also, the other party to a swap agreement could default on its obligations or refuse to cash out the fund’s investment at a reasonable price, which could turn an expected gain into a loss. Currently, certain categories of interest rate swaps are subject to mandatory clearing, and more are expected to be cleared in the future. The counterparty risk for cleared derivatives is generally expected to be lower than for uncleared over-the- counter derivative transactions as each party to a transaction looks only to the central clearing house for performance of obligations under the transaction. However, there can be no assurance that a clearing house, or its members, will satisfy the clearing house’s obligations to the fund or that the fund’s use of swaps will be advantageous. Preferred Stock Risk Foreign Securities Risk. To the extent the Fund invests in depositary receipts, the Fund will be subject to many of the same risks as when investing directly in non-U.S. securities. The holder of an unsponsored depositary receipt may have limited voting rights and may not receive as much information about the issuer of the underlying securities as would the holder of a sponsored depositary receipt. Emerging Markets Risk Foreign Currency Risk Small and Mid-Capitalization Stock Risk. Convertible Securities Risk. Risks Associated with Futures Contracts Risks Associated with Forward Currency Contracts The Fund may also utilize forward rate contracts. Under forward rate contracts, the buyer locks in an interest rate at a future settlement date. If the interest rate on the settlement date exceeds the lock rate, the buyer pays the seller the difference between the two rates. If the lock rate exceeds the interest rate on the settlement date, the seller pays the buyer the difference between the two rates. If the other party to a forward rate contract defaults, the Fund’s risk of loss consists of the net amount of payments that the Fund is contractually entitled to receive that is in excess of collateral posted by the Fund’s counterparty (whether a clearing corporation in the case of exchange-traded instruments or another third party in the case of over-the-counter instruments) in respect of such liability. If there is a default by the other party to such a transaction, the Fund will have contractual remedies pursuant to the agreements related to the transaction. These instruments are traded in the over-the-counter market. Certain currency derivatives are subject to regulation under the Dodd-Frank Act. Potential rule-making with respect to such derivatives could affect the cost of such derivatives or otherwise restrict the fund’s ability to effectively use currency derivatives. Risks Associated with Covered Calls Portfolio Turnover Risk portfolio turnover rates could result in corresponding increases in brokerage commissions and generate short-term capital gains taxable as ordinary income. Market Price of Common Shares Risks from Non-Diversified Status Management Risk Capital Market Risk Anti-Takeover Provisions Derivatives Risks Regulatory developments affecting the exchange-traded and OTC derivatives markets may impair a Fund’s ability to manage or hedge its investment portfolio through the use of derivatives. In particular, Rule 18f-4 under the 1940 Act requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk (“VaR”) leverage limit, certain derivatives risk management program and reporting requirements. Generally, these requirements apply unless a fund qualifies as a “limited derivatives user,” as defined in the rule. Under the rule, when a fund trades reverse repurchase agreements or similar financing transactions, including certain tender option bonds, it needs to aggregate the amount of indebtedness associated with the reverse repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness when calculating the fund’s asset coverage ratio or treat all such transactions as derivatives transactions. Reverse repurchase agreements or similar financing transactions aggregated with other indebtedness do not need to be included in the calculation of whether a fund is a limited derivatives user, but for funds subject to the VaR testing, reverse repurchase agreements and similar financing transactions must be included for purposes of such testing whether treated as derivatives transactions or not. The SEC also provided guidance in connection with the rule regarding use of securities lending collateral that may limit the ability of the Fund to use derivatives and reverse repurchase agreements and similar financing transactions as part of its investment strategies. These requirements may increase the cost of the Fund’s investments and cost of doing business, which could adversely affect investors. The Dodd- Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the rules promulgated thereunder may limit the ability of the Fund to enter into one or more exchange-traded or OTC derivatives transactions. Market Disruption and Geopolitical Risk Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), tariffs and trade disruptions, recession, changes in currency rates, terrorism, conflicts and social unrest, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. As global systems, economies and financial markets are increasingly interconnected, events that once had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region or financial market will, more frequently, adversely impact issuers in other countries, regions or markets. For example, developments in the banking or financial services sectors could adversely impact a wide range of companies and issuers. These impacts can be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat. These types of events quickly and significantly impact markets in the U.S. and across the globe leading to extreme market volatility and disruption. The extent and nature of the impact on supply chains or economies and markets from these events is unknown, particularly if a health emergency or other similar event, persists for an extended period of time. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the economies and financial markets and the Adviser’s investment advisory activities and services of other service providers, which in turn could adversely affect the Fund’s investments and other operations. The value of the Fund’s investment may decrease as a result of such events, particularly if these events adversely impact the operations and effectiveness of the Adviser or key service providers or if these events disrupt systems and processes necessary or beneficial to the investment advisory or other activities on behalf the Fund. Legislation, Policy and Regulatory Risk LIBOR Discontinuance or Unavailability Risk Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. While some existing LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, there may be significant uncertainty regarding the effectiveness of any such alternative methodologies to replicate LIBOR. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments. In addition, a liquid market for newly-issued instruments that use a reference rate other than LIBOR still may be developing. There may also be challenges for the Fund to enter into hedging transactions against such newly-issued instruments until a market for such hedging transactions develops. All of the aforementioned may adversely affect the Fund’s performance or net asset value. |
| Effects of Leverage [Text Block] | Effects of Leverage The following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on Common Share return, assuming investment portfolio total returns (comprised of income and changes in the value of securities held in the Fund’s portfolio) of minus 10% to plus 10%. These assumed investment portfolio returns are hypothetical figures and are not necessarily indicative of the investment portfolio total returns experienced or expected to be experienced by us. Further, the assumed investment portfolio total returns are after (net of) all of the Fund’s expenses other than expenses associated with leverage); but such leverage expenses are deducted when determining the Common Share return. See “Risks.” The table further reflects the use of leverage representing 33 1/3% of the Fund’s total assets and estimated leverage costs of 6.46%. Assumed Portfolio Return -10.00% -5.00% 0.00% 5.00% 10.00% Common Share Total Return -17.57% -10.23% -2.89% 4.44% 11.78% Corresponding Common Share return is composed of two elements: Common Share dividends paid by the Fund (the amount of which is largely determined by the Fund’s net distributable income after paying interest or dividends on the Fund’s Limited Leverage) and gains or losses on the value of the securities the Fund owns. As required by SEC rules, the table above assumes that the Fund is more likely to suffer capital losses than to enjoy capital appreciation. For example, to assume a total return of 0% would assume that the distributions the Fund receives on its investments are entirely offset by losses in the value of those securities. |
| Effects of Leverage [Table Text Block] | Assumed Portfolio Return -10.00% -5.00% 0.00% 5.00% 10.00% Common Share Total Return -17.57% -10.23% -2.89% 4.44% 11.78% |
| Return at Minus Ten [Percent] | (17.57%) |
| Return at Minus Five [Percent] | (10.23%) |
| Return at Zero [Percent] | (2.89%) |
| Return at Plus Five [Percent] | 4.44% |
| Return at Plus Ten [Percent] | 11.78% |
| Effects of Leverage, Purpose [Text Block] | The following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on Common Share return, assuming investment portfolio total returns (comprised of income and changes in the value of securities held in the Fund’s portfolio) of minus 10% to plus 10%. These assumed investment portfolio returns are hypothetical figures and are not necessarily indicative of the investment portfolio total returns experienced or expected to be experienced by us. Further, the assumed investment portfolio total returns are after (net of) all of the Fund’s expenses other than expenses associated with leverage); but such leverage expenses are deducted when determining the Common Share return. See “Risks.” The table further reflects the use of leverage representing 33 1/3% of the Fund’s total assets and estimated leverage costs of 6.46%. |
| Investment and Market Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Investment and Market Risk |
| Risks Associated with Investment in Commercial Real Estate Loans [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks Associated with Investment in Commercial Real Estate Loans. ● Declines in the value of real estate; ● Declines in rental or occupancy rates; ● Risks related to general and local economic conditions; ● Dependency on management skills of the borrower or third-party property management firm; ● Risk depending on the timing of cash flows from the underlying mortgage properties; ● Possible lack of available mortgage funds to refinance the mortgage loans at maturity; ● Overbuilding; ● Extended vacancies in properties; ● Increases in property taxes and operating expenses, including energy costs; ● Changes in zoning laws and other governmental rules, regulation and fiscal policies; compliance with existing legal and regulatory requirements, including environ-mental controls and regulations; ● Risks related to the ability of a property to attract and retain tenants, including those listed in this section, as well as the ability of a property owner to pay leasing commissions, provide adequate maintenance and insurance, pay tenant improvement costs and make other tenant concessions; ● Expenses incurred in the cleanup of environmental problems; ● Costs and delays involved in enforcing rights of a property owner against tenants that default under the terms of leases or seek protection of bankruptcy laws; ● Risks related to the type and use of a particular commercial property, e.g., hospitals, nursing homes, hospitality properties and other property types; ● Casualty or condemnation losses, including where liability and casualty insurance does not provide full protection; ● Changes in interest rates, tightening lending standards and the availability of credit to refinance such loans at or prior to maturity; ● Changes in tax laws; ● Terrorist threats and attacks; ● Social unrest and civil disturbances; and ● Weather and other acts of God. The above factors may impact the ability of a borrower to meet its obligations on the loan. Certain loans may default which could result in either a foreclosure of the property or a restructure of the loan. Such actions may impact the amount of proceeds ultimately derived from the loan, and the timing of receipt of such proceeds may be shorter or longer than the original term of the loan. Losses on the loans will negatively impact the most subordinate CMBS classes first. Any proceeds received from the loans will generally be applied to the most senior bonds outstanding before any payments are made to the subordinate bonds. The occurrence of defaults and losses on the loans may result in downgrades of the CMBS by the NRSROs. In addition the following risks apply to investments in CMBS (several of which also apply more generally to investments in debt securities and other asset-backed securities): Credit Quality and Selection. As a result, the quality of the CMBS is dependent upon the selection of the commercial mortgages for each issuance and the cash flow generated by the commercial real estate assets. Risk factors related to the foregoing include: ● Potential lack of diversification in certain CMBS issuances; ● Dependence on the skills, decision-making and experience of the various issuers in selecting the commercial mortgages backing the issuances; and ● Adverse borrower selection within an issuance. Amortization, Refinance or Sale . Lack of Sufficient Investment Opportunities Lack of Operating Control of Underlying Investments . Lack of Control Over CMBS . Due Diligence Risks of CMBS. Credit Ratings — Rating Agencies . Use of Credit Rating . Risks Associated with the Insolvency of Obligations Backing CMBS . Risks Associated with Interest Shortfall s Risks Associated with Prepayment Risks Associated with Extensions. Reinvestment Risk Risks Associated with the Servicers Risks Associated with Structured Securities Risks Associated with the Limited Liquidity of CMBS Risks Associated with Interest Rate Movements. “Spread Widening” Risk Risks Associated with Hedging Over-the-counter derivatives transactions are also subject to counterparty risk. The Fund’s use of derivatives or other hedging transactions may be limited by legal and regulatory requirements applicable to the Fund or PrinREI. Tax Risk Relating to Investments in Certain REMICs . In addition, if the Fund realizes excess inclusion income and allocates it to Common Shareholders, this income cannot be offset by net operating losses of the Common Shareholders. If the Common Shareholder is a tax-exempt entity and not a disqualified organization, then this income would be fully taxable as unrelated business taxable income under Section 512 of the Code. If the Common Shareholder is a foreign person, it would be subject to U.S. federal income tax withholding on this income without reduction or exemption pursuant to any otherwise applicable income tax treaty. Risks Associated with Tax Code or Accounting Changes |
| Below Investment Grade Securities Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Below Investment Grade Securities Risk. |
| Real Estate-Related Securities Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Real Estate-Related Securities Risk ● the burdens of ownership of real property; ● general and local economic conditions (such as an oversupply of space or a reduction in demand for space); ● the supply and demand for properties (including competition based on rental rates); ● energy and supply shortages; ● fluctuations in average occupancy and room rates; ● the attractiveness, type and location of the properties and changes in the relative popularity of commercial properties as an investment; ● the financial condition and resources of tenants, buyers and sellers of properties; ● increased mortgage defaults; ● the quality of maintenance, insurance and management services; ● changes in the availability of debt financing which may render the sale or refinancing of properties difficult or impracticable; ● changes in building, environmental and other laws and/or regulations (including those governing usage and improvements), fiscal policies and zoning laws; ● changes in real property tax rates; ● changes in interest rates and the availability of mortgage funds which may render the sale or refinancing of properties difficult or impracticable; ● changes in operating costs and expenses; ● energy and supply shortages; ● uninsured losses or delays from casualties or condemnation; ● negative developments in the economy that depress travel or leasing activity; ● environmental liabilities; ● contingent liabilities on disposition of assets; ● uninsured or uninsurable casualties; ● acts of God, including earthquakes, hurricanes and other natural disasters; ● social unrest and civil disturbances, epidemics, pandemics or other public crises; - terrorist attacks and war; ● risks and operating problems arising out of the presence of certain construction materials, structural or property level latent defects, work stoppages, shortages of labor, strikes, union relations and contracts, fluctuating prices and supply of labor and/or other labor-related factor; and ● other factors which are beyond the control of the Adviser and its affiliates. In addition, the Fund’s investments will be subject to various risks which could cause fluctuations in occupancy, rental rates, operating income and expenses or which could render the sale or financing of its properties difficult or unattractive. For example, following the termination or expiration of a tenant’s lease, there may be a period of time before the Fund will begin receiving rental payments under a replacement lease. During that period, the Fund will continue to bear fixed expenses such as interest, real estate taxes, maintenance and other operating expenses. In addition, declining economic conditions may impair the Fund’s ability to attract replacement tenants and achieve rental rates equal to or greater than the rents paid under previous leases. Increased competition for tenants may require the Fund to make capital improvements to properties which would not have otherwise been planned. Ultimately, to the extent that the Fund is unable to renew leases or re-let space as leases expire, decreased cash flow from tenants will result, which could adversely impact the Fund’s operating results. |
| REIT-Related Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | REIT-Related Risk. |
| Risks Associated with Direct Ownership of Real Estate Loans [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks Associated with Direct Ownership of Real Estate Loans. Commercial Mortgage Loans Commercial mortgage loans are generally viewed as exposing a lender to a greater risk of loss through delinquency and foreclosure than lending on the security of single-family residences. The ability of a borrower to repay a loan secured by income-producing property typically is dependent primarily upon the successful operation and operating income of such property (i.e., the ability of tenants to make lease payments, the ability of a property to attract and retain tenants, and the ability of the owner to maintain the property, minimize operating expenses, and com-ply with applicable zoning and other laws) rather than upon the existence of independent income or assets of the borrower. Most commercial mortgage loans provide recourse only to specific assets, such as the property, and not against the borrower’s other assets or personal guarantees. Commercial mortgage loans generally do not fully amortize, which can necessitate a sale of the property or refinancing of the remaining “balloon” amount at or prior to maturity of the mortgage loan. Accordingly, investors in commercial mortgage loans bear the risk that the borrower will be unable to refinance or otherwise repay the mortgage at maturity, thereby increasing the likelihood of a default on the borrower’s obligation. Exercise of foreclosure and other remedies may involve lengthy delays and additional legal and other related expenses on top of potentially declining property values. In certain circumstances, the creditors may also become liable upon taking title to an asset for environmental or structural damage existing at the property. Subordination of Investments Mezzanine Loans B-Notes and A/B Structures Bridge Financings |
| Concentration Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Concentration Risk |
| Credit Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Credit Risk. |
| Pricing Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Pricing Risk Secondary markets may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may prevent the Fund from being able to realize full value and thus sell a security for its full valuation. This could cause a material decline in the Fund’s net asset value. |
| Excise Tax Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Excise Tax Risk. |
| Asset-Backed Securities Risks [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Asset-Backed Securities Risks Payments of principal and interest on asset-backed securities may be dependent upon the cash flow generated by the underlying assets backing the securities and, in certain cases, may be supported by some form of credit enhancement. The degree of credit enhancement provided for each issue is generally based on historical information respecting the level of credit risk associated with the underlying assets. Delinquency or loss in excess of that anticipated or failure of the credit enhancement could adversely affect the return on an investment in such a security. The value of the securities also may change because of changes in interest rates or changes in the market’s perception of the creditworthiness of the servicing agent for the loan pool, the originator of the loans or the financial institution providing the credit enhancement. Additionally, since the deterioration of worldwide economic and liquidity conditions that became acute in 2008, asset- backed securities have been subject to greater liquidity risk. Asset-backed securities are ultimately dependent upon payment of loans and receivables by individuals, businesses and other borrowers, and the Fund generally has no recourse against the entity that originated the loans. The yield characteristics of the asset-backed securities in which the Fund may invest differ from those of traditional debt securities. Among the major differences are that interest and principal payments are made more frequently on asset-backed securities (usually monthly) and that principal may be prepaid at any time because the underlying assets generally may be prepaid at any time. As a result, if the Fund purchases these securities at a premium, a prepayment rate that is faster than expected will reduce their yield, while a prepayment rate that is slower than expected will have the opposite effect of increasing yield. Conversely, if the Fund purchases these securities at a discount, faster than expected prepayments will increase, while slower than expected prepayments will reduce, the yield on these securities. Because prepayment of principal generally occurs during a period of declining interest rates, the Fund may generally have to reinvest the proceeds of such prepayments at lower interest rates. Therefore, asset-backed securities may have less potential for capital appreciation in periods of falling interest rates than other income-bearing securities of comparable maturity. The availability of asset-backed securities may be affected by legislative or regulatory developments. It is possible that such developments may require the Fund to dispose of any then-existing holdings of such securities. |
| Repurchase Agreement Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Repurchase Agreement Risk. |
| Risks Related to the Funds Use of Leverage [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks Related to the Fund’s Use of Leverage If the Fund utilizes leverage in the form of borrowing, the money borrowed for investment purposes will incur interest based on shorter-term interest rates that would be periodically reset. So long as the Fund’s portfolio provides a higher rate of return, net of expenses, than the interest rate on borrowed money, as reset periodically, the leverage may cause the holders of Common Shares to receive a higher current rate of return than if the Fund were not leveraged. If, however, long-term and/or short-term rates rise, the interest rate on borrowed money could exceed the rate of return on securities held by the Fund, reducing return to the holders of Common Shares. There is no assurance that a leveraging strategy will be successful or that it will be used. Leverage involves risks and special considerations for Common Stockholders, including: ● the likelihood of greater volatility of NAV, market price and dividend rate of the Common Shares than a comparable portfolio without leverage; ● the risk that fluctuations in interest rates on borrowings or on short-term debt or in the interest or dividend rates on any debt securities or preferred shares that the Fund must pay will reduce the return to the Common Stockholders; ● the effect of leverage in a declining market, which is likely to cause a greater decline in the NAV of the Common Shares than if the Fund were not leveraged, may result in a greater decline in the market price of the Common Shares; ● when the Fund uses financial leverage, the investment management fees payable to the Adviser and the subadvisory fees payable by the Adviser to the Subadviser will be higher than if the Fund did not use leverage. This may create a conflict of interest between the Adviser and the Subadviser, on the one hand, and the holders of Common Shares, on the other; and ● leverage may increase operating costs, which may reduce total return. The use of leverage will require the Fund to segregate assets to cover its obligations (or, if the Fund borrows money or issues preferred shares, to maintain asset coverage in conformity with the requirements of the 1940 Act). While the segregated assets will be invested in liquid securities, they may not be used for other operational purposes. Consequently, the use of leverage may limit the Fund’s flexibility and may require that the Fund sell other portfolio investments to pay Fund expenses, to maintain assets in an amount sufficient to cover the Fund’s leveraged exposure or to meet other obligations at a time when it may be disadvantageous to sell such assets. Certain types of borrowings by the Fund may result in the Fund being subject to covenants in credit agreements relating to asset coverage and portfolio composition requirements. The Fund may be subject to certain restrictions on investments imposed by guidelines of one or more rating agencies, which may issue ratings for the short-term debt securities or preferred shares issued by the Fund. These guidelines may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the 1940 Act. The Subadviser does not believe that these covenants or guidelines will impede it from managing the Fund’s portfolio in accordance with the Fund’s investment objective and policies if the Fund were to utilize leverage. |
| Risks Associated with Swap Transactions [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks Associated with Swap Transactions There are risks in the use of swaps. Swaps could result in losses if interest or foreign currency exchange rates or credit quality changes are not correctly anticipated. Total return swaps could result in losses if the reference index, security, or investments do not perform as anticipated. Total return swaps involve an enhanced risk that the issuer or counterparty will fail to perform its contractual obligations. Total return swaps may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on the full notional amount of the swap. To the extent the Fund enters into a total return swap on equity securities, the Fund will receive the positive performance of a notional amount of such securities underlying the total return swap. In exchange, the Fund will be obligated to pay the negative performance of such notional amount of securities. Therefore, the Fund assumes the risk of a substantial decrease in the market value of the equity securities. The use of swaps may not always be successful; using them could lower fund total return, their prices can be highly volatile, and the potential loss from the use of swaps can exceed the fund’s initial investment in such instruments. Also, the other party to a swap agreement could default on its obligations or refuse to cash out the fund’s investment at a reasonable price, which could turn an expected gain into a loss. Currently, certain categories of interest rate swaps are subject to mandatory clearing, and more are expected to be cleared in the future. The counterparty risk for cleared derivatives is generally expected to be lower than for uncleared over-the- counter derivative transactions as each party to a transaction looks only to the central clearing house for performance of obligations under the transaction. However, there can be no assurance that a clearing house, or its members, will satisfy the clearing house’s obligations to the fund or that the fund’s use of swaps will be advantageous. |
| Preferred Stock Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Preferred Stock Risk |
| Foreign Securities Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Foreign Securities Risk. To the extent the Fund invests in depositary receipts, the Fund will be subject to many of the same risks as when investing directly in non-U.S. securities. The holder of an unsponsored depositary receipt may have limited voting rights and may not receive as much information about the issuer of the underlying securities as would the holder of a sponsored depositary receipt. |
| Emerging Markets Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Emerging Markets Risk |
| Foreign Currency Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Foreign Currency Risk |
| Small and Mid-Capitalization Stock Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Small and Mid-Capitalization Stock Risk. |
| Convertible Securities Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Convertible Securities Risk. |
| Risks Associated with Futures Contracts [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks Associated with Futures Contracts |
| Risks Associated with Forward Currency Contracts [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks Associated with Forward Currency Contracts The Fund may also utilize forward rate contracts. Under forward rate contracts, the buyer locks in an interest rate at a future settlement date. If the interest rate on the settlement date exceeds the lock rate, the buyer pays the seller the difference between the two rates. If the lock rate exceeds the interest rate on the settlement date, the seller pays the buyer the difference between the two rates. If the other party to a forward rate contract defaults, the Fund’s risk of loss consists of the net amount of payments that the Fund is contractually entitled to receive that is in excess of collateral posted by the Fund’s counterparty (whether a clearing corporation in the case of exchange-traded instruments or another third party in the case of over-the-counter instruments) in respect of such liability. If there is a default by the other party to such a transaction, the Fund will have contractual remedies pursuant to the agreements related to the transaction. These instruments are traded in the over-the-counter market. Certain currency derivatives are subject to regulation under the Dodd-Frank Act. Potential rule-making with respect to such derivatives could affect the cost of such derivatives or otherwise restrict the fund’s ability to effectively use currency derivatives. |
| Risks Associated with Covered Calls [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks Associated with Covered Calls |
| Portfolio Turnover Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Portfolio Turnover Risk portfolio turnover rates could result in corresponding increases in brokerage commissions and generate short-term capital gains taxable as ordinary income. |
| Market Price of Common Shares [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Market Price of Common Shares |
| Risks from Non-Diversified Status [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Risks from Non-Diversified Status |
| Management Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Management Risk |
| Capital Market Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Capital Market Risk |
| Anti-Takeover Provisions [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Anti-Takeover Provisions |
| Derivatives Risks [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Derivatives Risks Regulatory developments affecting the exchange-traded and OTC derivatives markets may impair a Fund’s ability to manage or hedge its investment portfolio through the use of derivatives. In particular, Rule 18f-4 under the 1940 Act requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk (“VaR”) leverage limit, certain derivatives risk management program and reporting requirements. Generally, these requirements apply unless a fund qualifies as a “limited derivatives user,” as defined in the rule. Under the rule, when a fund trades reverse repurchase agreements or similar financing transactions, including certain tender option bonds, it needs to aggregate the amount of indebtedness associated with the reverse repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness when calculating the fund’s asset coverage ratio or treat all such transactions as derivatives transactions. Reverse repurchase agreements or similar financing transactions aggregated with other indebtedness do not need to be included in the calculation of whether a fund is a limited derivatives user, but for funds subject to the VaR testing, reverse repurchase agreements and similar financing transactions must be included for purposes of such testing whether treated as derivatives transactions or not. The SEC also provided guidance in connection with the rule regarding use of securities lending collateral that may limit the ability of the Fund to use derivatives and reverse repurchase agreements and similar financing transactions as part of its investment strategies. These requirements may increase the cost of the Fund’s investments and cost of doing business, which could adversely affect investors. The Dodd- Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the rules promulgated thereunder may limit the ability of the Fund to enter into one or more exchange-traded or OTC derivatives transactions. |
| Market Disruption and Geopolitical Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Market Disruption and Geopolitical Risk Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), tariffs and trade disruptions, recession, changes in currency rates, terrorism, conflicts and social unrest, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. As global systems, economies and financial markets are increasingly interconnected, events that once had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region or financial market will, more frequently, adversely impact issuers in other countries, regions or markets. For example, developments in the banking or financial services sectors could adversely impact a wide range of companies and issuers. These impacts can be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat. These types of events quickly and significantly impact markets in the U.S. and across the globe leading to extreme market volatility and disruption. The extent and nature of the impact on supply chains or economies and markets from these events is unknown, particularly if a health emergency or other similar event, persists for an extended period of time. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the economies and financial markets and the Adviser’s investment advisory activities and services of other service providers, which in turn could adversely affect the Fund’s investments and other operations. The value of the Fund’s investment may decrease as a result of such events, particularly if these events adversely impact the operations and effectiveness of the Adviser or key service providers or if these events disrupt systems and processes necessary or beneficial to the investment advisory or other activities on behalf the Fund. |
| Legislation, Policy and Regulatory Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Legislation, Policy and Regulatory Risk |
| LIBOR Discontinuance or Unavailability Risk | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | LIBOR Discontinuance or Unavailability Risk Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. While some existing LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, there may be significant uncertainty regarding the effectiveness of any such alternative methodologies to replicate LIBOR. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments. In addition, a liquid market for newly-issued instruments that use a reference rate other than LIBOR still may be developing. There may also be challenges for the Fund to enter into hedging transactions against such newly-issued instruments until a market for such hedging transactions develops. All of the aforementioned may adversely affect the Fund’s performance or net asset value. |
