I have owned a medium term bond mutual fund at a large mutual fund company for years without making any new deposits or withdraws and I just reinvest the dividends. Each month it consistently pays a dividend of about the same amount. This December that dividend dropped in half. As I understand it, my dividend is just a reflection of the dividends paid to the mutual fund by the underlying bonds. Which means 50% of of bonds paid no dividend in December, which seems highly unlikely.
I called the mutual fund company and they gave me some bullshit explanation about European bonds having problems due to Britex. Can anyone explain how this could happen?