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8:30 AM EST Tuesday, March 11, 2008: Yesterday's super-important press release:

Eaton Vance Announces New Financing Arrangement for Three Closed-End Funds

Proceeds to be Used for a Complete Redemption of the Funds' Auction Preferred Shares

BOSTON, MA - Eaton Vance Corp. (NYSE: EV) announced today that three closed-end equity funds managed by its affiliate Eaton Vance Management have secured committed financing totaling approximately $1.6 billion that the funds intend to use to redeem all of their outstanding auction preferred shares ("APS"). The three closed-end funds are: Eaton Vance Tax-Advantaged Dividend Income Fund (NYSE: EVT); Eaton Vance Tax-Advantaged Global Dividend Income Fund (NYSE: ETG); and Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE: ETO) (collectively, the "Funds"). With the new financing, the Funds intend to change their method of leverage from APS to debt. The Funds expect to redeem in full their outstanding APS, subject to completion of their new financing arrangements and satisfying the notice and other requirements that apply to APS redemptions. It is expected that each series of the Funds' APS will be redeemed at the next dividend date after March 28, 2008. See www.eatonvance.com under closed-end fund press releases to view the Funds' announcement. To receive a hard copy of this information call (800) 225-6265.

Eaton Vance manages 29 leveraged closed-end funds with approximately $5 billion of APS outstanding collectively. Completion of the intended APS redemptions being announced today will reduce the amount of outstanding APS for Eaton Vance sponsored closed-end funds by approximately 32%. Eaton Vance understands that the current disruption in the auction rate securities market imposes significant hardship on APS holders who need access to liquidity. Eaton Vance is working diligently to provide liquidity solutions for its funds' remaining APS holders, and is hopeful that it will be able to do so. Different solutions may be most workable for different types of funds (equity, taxable income and municipal income). The financing arrangement being announced today is only applicable to the three equity funds; other alternatives are being pursued for other types of funds and it is not certain when, or if, solutions will be available to these funds.

Eaton Vance Corp., a Boston based investment management firm, is listed on the New York Stock Exchange under the symbol EV. Through its subsidiaries, Eaton Vance Corp. manages funds and separate accounts for individuals and institutional clients.

The company also issued three releases on its web site. The first reads:

Auction Preferred Shares

Since mid-February, the normal functioning of the auction market for certain types of "auction rate securities" in the U.S. has been disrupted by an imbalance between buy and sell orders. Issuers of auction rate securities include student loan programs, municipalities and closed-end funds. A number of Eaton Vance closed-end funds (the "Funds") have outstanding series of Auction Preferred Shares ("APS"). The APS issued by the Funds are senior equity securities that are entitled to receive a stated liquidation preference amount in any liquidation, dissolution or winding up of the Fund before any distribution or payment to holders of the Fund's common shares. Dividends declared and payable on the APS have a similar priority over dividends on a Fund's common shares. The APS are perpetual securities and are not subject to mandatory redemption so long as the Fund meets certain specified asset coverage tests, which include a requirement set forth under the Investment Company Act of 1940 that each Fund maintain, as of the last business day of each month, asset coverage of at least 200% with respect to the APS and any other outstanding senior securities. Each of the Funds remains in compliance with all APS asset coverage tests and the APS continue to be highly rated (AAA/Aaa or AA/Aa).

Under normal market conditions, dividend rates on the APS for each dividend period (typically weekly, but longer in certain cases) are set at the market clearing rate determined through an auction process that brings together bidders who seek to buy APS and holders of APS who seek to sell. In the event of an imbalance of sell orders over bids, the auction does not clear, and the dividend payment rate over the next period for APS holders is set at a specified maximum applicable rate, equal to a stated spread over a reference market benchmark rate. An unsuccessful auction is not a default; the Fund continues to pay dividends to all APS holders, but at the specified maximum rate rather than a marketclearing rate.

Consistent with patterns in the broader market for auction rate securities, in recent weeks, a number of Funds have experienced unsuccessful APS auctions. As described above, in the event of an unsuccessful APS auction, the affected APS shares remain outstanding, and the dividend rate reverts to the specified maximum payable rate. We believe that the earnings rate on the Funds' assets continues to exceed the cost of the APS, based on the current maximum applicable rates, and that leveraging the Funds remains appropriate. So long as the earnings rate on a Fund's assets exceeds the cost of leverage, reducing or eliminating leverage is generally not in the best interests of the Fund's common shareholders.

The current dividend rate and other information for each series of the Funds' APS are posted to the Eaton Vance Closed-End Fund website and will be updated regularly.

Eaton Vance continues to monitor closely developments in the APS market during this period of disruption and is engaged in discussions with other market participants to develop solutions to restore liquidity to holders of APS.

On March 10, 2008, three Funds announced that they had secured committed financing that the Funds intend to use to redeem all of their outstanding APS. Eaton Vance is hopeful that liquidity solutions can be implemented for its other Funds' APS holders. Different solutions may be most workable for different types of Funds (equity, taxable income and municipal income). It is not clear at this time when a solution may be identified and implemented for other Funds. Eaton Vance understands that the current disruption in the auction rate securities market imposes significant hardship on APS holders who need access to liquidity and is working hard to implement solutions as soon as possible.

Questions and Answers Concerning Auction Preferred Shares Issued by Eaton Vance Closed-End Funds

Questions and Answers Concerning Auction Preferred Shares

Beginning in mid-February and consistent with patterns in the broader market for auction rate securities, a number of Eaton Vance closed-end funds (the "Funds") have experienced unsuccessful auctions of their auction preferred shares ("APS"). Set forth below are questions and answers about APS and the current situation in the auction rate securities market.

1. What are auction rate securities?

Auction rate securities are variable rate debt or preferred equity instruments whose coupon or dividend rate is reset at regular intervals (most commonly every seven days), normally based on an auction process conducted by an independent auction agent. Issuers of auction rate securities include student loan programs, municipalities and certain closed-end funds.

2. Why do closed-end funds issue auction rate securities?

Auction rate securities are issued by closed-end funds to provide capital for investment in accordance with the funds' objective and policies, in addition to the funds' common equity. Use of debt or preferred equity by a fund to acquire additional investments is referred to as "leverage." While leverage involves additional risks to a fund's common shareholders, it can enhance the fund's returns to the extent that the return on investments acquired through leverage exceeds the cost associated with the leverage. The auction rate securities issued by closed-end funds are preferred equity instruments rather than debt. Auction preferred securities have historically provided closed-end funds with financial leverage at a cost that compares favorably to other alternatives.

3. How many closed-end funds have issued preferred securities?

According to the Investment Company Institute, 347 closed-end funds (of 668 total closed-end funds) have preferred securities outstanding.

4. How many Eaton Vance Funds have APS outstanding?

Twenty-nine (29) Funds currently have outstanding APS. A listing of the Funds with outstanding APS is shown on the closed-end funds section of the Eaton Vance website at www.eatonvance.com.

The total liquidation preference value of the APS is approximately $5 billion. Three of the Funds, with outstanding APS of approximately $1.6 billion, announced on March 10, 2008, a plan to redeem all their outstanding APS and replace the Funds' APS leverage with borrowings. See Question 18 below.

5. What are the principal terms of the APS?

APS are senior equity securities that have a liquidation preference of $25,000 per share plus the amount of any accumulated but unpaid dividends. Upon the liquidation, dissolution or winding up of a Fund, APS holders are entitled to receive their liquidation preference before any distribution or payment is made to holders of the Fund's common shares. Dividends declared and payable on the APS have a priority over dividends on a Fund's common shares. The APS are perpetual securities and are not subject to mandatory redemption so long as the Fund meets certain specified asset coverage tests, which include a requirement set forth under the Investment Company Act of 1940 that each Fund Not maintain, as of the last business day of each month, asset coverage of at least 200% with respect to the APS and any other outstanding senior securities. APS may be redeemed at the option of a Fund upon giving notice to APS holders. As described in Question 18 below, three of the Funds announced on March 10, 2008, a plan to redeem all their outstanding APS and replace the Funds' APS leverage with borrowings.

6. Have the Funds' APS been rated by credit rating agencies?

Yes. The APS issued by Eaton Vance Credit Opportunities Fund (EOE) is rated Aa1 by Moody's and AA by Fitch. All APS issued by other Funds are rated AAA/Aaa by one or more of Standard & Poor's, Moody's and Fitch. Information regarding the ratings and senior securities coverage ratios of each Fund's APS is set forth on the closed-end funds section of the Eaton Vance website at www.eatonvance.com.

7. Are recent unsuccessful APS auctions likely to cause the rating agencies to downgrade the securities?

The status of a Fund's APS auctions should not affect its credit rating. The Funds currently are meeting the asset coverage requirements necessary to maintain current ratings, and Eaton Vance expects them to continue to do so. As such, we do not expect the APS to be downgraded. The current disruption in the APS market is a liquidity issue, not a credit issue.

8. How does the APS auction process normally function?

APS auctions are typically conducted every seven days, 28 days or at other intervals determined under procedures set forth in Fund by-laws. In an auction, holders of APS may either offer shares for sale, hold their shares (and accept whatever dividend rate results from the auction) or hold at a stated rate, meaning that they will hold shares only if the clearing auction rate is at least equal to the specified rate. Potential buyers must specify a minimum rate at which they would buy shares. Orders are submitted to one or more broker-dealers that have entered into an agreement with the APS auction agent. Brokerdealers then submit customer orders, along with any orders for their own accounts, to the auction agent. The auction agent fills bids to buy a Fund's APS to the extent there are sufficient offers to sell, and fills sell orders to the extent there are sufficient bids to buy the APS. The APS dividend rate for the next dividend period is set at the lowest rate that will result in all outstanding shares continuing to be held.

9. Are APS holders always able to sell shares through the auction process?

Not necessarily. If there are insufficient bids to buy the APS shares that are offered for sale in a particular auction, the auction does not clear. If there are some bids to buy APS through the auction but not enough bids to clear all of the APS offered for sale, then the sell orders are filled pro rata to the amount of the bids. If there are no bids to buy the APS offered for sale through an auction, then no APS are transferred as a result of that auction.

10. Does an unsuccessful auction constitute a default or trigger redemption rights?

An unsuccessful auction is not a default, nor does it trigger liquidation or `put' rights for APS holders that require a Fund to redeem APS. Following an unsuccessful auction, APS holders continue to receive dividends, although at a prescribed maximum applicable rate rather than an auction-determined rate. All series of the Funds' APS remain current in their dividend payments to shareholders.

11. When an auction does not clear, how is the dividend rate set for the next dividend period?

When an auction does not clear, the dividend rate for the next dividend period is set at the maximum applicable rate established pursuant to the Fund's by-laws. The maximum applicable rate is determined by reference to a market rate (such as LIBOR or a commercial paper rate). The method for determining the maximum applicable rate for each Fund's APS and the current dividend rate for each series of APS are set forth on the closed-end fund section of the Eaton Vance website at www.eatonvance.com.

12. What is the effect of unsuccessful auctions on APS holders?

APS holders continue to receive dividends, though based on the prescribed maximum applicable rate for the APS rather than an auction-determined rate. APS holders' ability to sell shares through the auction process is limited to the number of bids received, which may be zero. APS shares that cannot be sold in an auction may be offered for sale at the next scheduled auction, which may also be unsuccessful.

13. What is the ability of APS holders to obtain liquidity outside the auction process?

There is currently no established mechanism for APS holders to obtain liquidity other than through the auction process or redemptions of the APS by the issuing Fund. As described in Question 18 below, three of the Funds announced on March 10, 2008, a plan to redeem all their outstanding APS and replace the Funds' APS leverage with borrowings. Eaton Vance is working diligently to provide liquidity solutions for its other Funds' APS holders and is hopeful that it will be able to do so. Different solutions may be most workable for different types of funds (equity, taxable income and municipal income). It is not clear at this time when, or if, a solution may be identified and implemented for the APS holders of other Funds.

Although press reports have described initiatives to develop a secondary market for closed-end fund auction preferred securities, Eaton Vance does not believe an active secondary market for APS exists today. If an active secondary market does develop, APS may trade at less than their liquidation preference amount.

Eaton Vance understands that a number of broker-dealers have initiated lending programs with favorable terms for customers holding auction preferred securities. APS holders should contact their financial advisor for details.

14. What is the effect of unsuccessful APS auctions on a Fund's common shareholders?

As noted above, unsuccessful auctions cause the dividend rate on the APS to increase to the maximum applicable rate. This raises the Fund's cost of leverage and reduces the net return earned on the Fund's leveraged assets. Eaton Vance believes that the earnings rate of the Funds' assets continues to exceed the cost of the APS based on current maximum applicable rates and that leveraging the Funds remains appropriate. So long as the earnings rate on a Fund's assets exceeds the cost of leverage, reducing or eliminating leverage is generally not in the best interest of the Fund's common shareholders. Disruption in the APS market does not affect the Funds' net asset values or the ability of common shareholders to sell their stock, but may affect the volatility and/or widen the market discounts that apply to secondary market trading of the Funds' common shares.

15. If the cost of the leverage becomes too expensive, will the Funds be forced to cut their dividends on common shares?

Leverage costs have a direct impact on a Fund's ability to sustain dividends on common shares. However, under the current circumstances and with APS rates as they are, the use of leverage remains beneficial and has not resulted in a reduction in the dividends to common shareholders.

16. Have unsuccessful auctions of the Fund's APS occurred in the past?

No. Until the middle of February, none of the Funds had ever experienced an unsuccessful APS auction. Among closed-end funds generally, unsuccessful auctions of auction preferred securities have been extremely rare, and never occurred on a systematic basis until February 2008. Since mid-February, all or nearly all auctions of closed-end fund auction preferred securities have been unsuccessful.

17. What happened to cause APS auctions to stop clearing in February?

Eaton Vance believes that the seizing up of APS auctions in February occurred as a result of broader dislocation in the financial markets, which first affected student loan and municipal issuers of auction rate securities before spilling into the closed-end fund auction preferred market. We do not believe that the unsuccessful auctions are due to credit concerns relating to closed-end funds, which are subject to asset coverage requirements that do not apply to other types of auction rate securities. Specifically, closed-end funds are required by the Investment Company Act of 1940 to maintain asset coverage of at least 200% with respect to their preferred stock and other senior securities outstanding, meaning that the funds must maintain at least $2 of assets for each $1 of senior securities. In addition, closed-end funds offer investors considerable transparency, providing daily net asset values and periodic reporting of fund holdings and other financial data.

18. What actions is Eaton Vance taking to address the current situation?

Eaton Vance is working diligently with other market participants to develop solutions for restoring liquidity to APS holders as quickly as possible. On March 10, 2008, three Funds with outstanding APS of approximately $1.6 billion announced that they had secured committed financing that the Funds intend to use to redeem all of their outstanding APS.

The three Funds are: Eaton Vance Tax-Advantaged Dividend Income Fund (NYSE: EVT), Eaton Vance Tax-Advantaged Global Dividend Income Fund (NYSE: ETG) and Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE: ETO). With the new financing, the Funds intend to change their method of leverage from APS to debt. The Funds announced that they expect to redeem in full their outstanding APS subject to completion of the new financing arrangements and satisfying the notice and other requirements that apply to APS redemptions. It is expected that each series of the Funds' APS will be redeemed at the next dividend payment date after March 28th. The cost to the Funds of the new debt leverage is expected to be lower than the maximum applicable dividend rates on the APS that now apply. The Funds will not be required to sell portfolio holdings to participate in the financing arrangement.

Completion of the intended APS redemptions described above will reduce the amount of the Funds' outstanding APS by approximately 32%. Eaton Vance is hopeful that liquidity solutions can be implemented for its Funds' remaining APS holders. Different solutions may be most workable for different types of Funds (equity, taxable income and municipal income). The financing arrangement for the three Funds described above is only applicable to equity funds; other alternatives are being pursued for other types of funds. It is not clear at this time when, or if, a solution may be identified and implemented for other Funds' APS holders. While we seek to restore liquidity to APS holders, we are providing them with current information about auction results and dividend rates (see the closed-end funds section of our website at www.eatonvance.com) as well as regular updates on market conditions and other information relevant to Fund shareholders. Eaton Vance understands that the current disruption in the auction rate securities market imposes significant hardship on APS holders who need access to liquidity and is working hard to implement solutions as soon as possible.

The foregoing is provided solely for informational purposes and is not to be considered tax, legal or investment advice. This document is not intended as a solicitation or an offer to buy or sell any security or other instrument. The foregoing information is based on market conditions as of the date hereof; different conditions and assumptions may have materially different results.

The third release is a table showing all the auction preferred shares issued by Eaton Vance, their cusip numbers, their current dividend, their next reset, etc. For the table, click here.

My comments: This Eaton Vance redemption is critically important. Friday's redemption by Aberdeen involved only $30 million. This one by Eaton Vance involves $1.6 billion. That's a major difference and gives me serious hope that companies like Nuveen (the biggest issuer of auction rate preferreds) won't be far behind.

The sad part of all this is that the funds have been so reluctant to give their auction rate preferreds holders any emotional solace. And many have been suffering, fearful that their life savings are lost.

I cannot personally guarantee that other firms will follow Eaton Vance's lead. I do believe:

1. It is still too early for lawyers. I hear that some panicking ARPs shareholders are already signing high contingency fees -- some as high as 40%. In other words, if your fund does do an Eaton Vance and redeem without the necessity for legal action, you may still owe your lawyers 40% of what you get back.

2. I believe other ARPs issuing firms will follow the leads of Eaton Vance and Aberdeen. I worry that with the accelerating mess in financial markets, some issuers may find securing loans difficult. There may simply be not enough money around. Or lenders may feel reluctant to tie their monies up. In short, I'm optimistic, but recognize it could take many many months for all of us to be pulled out of our auction rate preferreds.

3. You can borrow against your auction rate preferreds. But you must be very careful of the terms of the loan. The ideal terms would include a provision that your loan was due the day you received your cash redemption from the issuer (e.g. Eaton Vance, Nuveen , BlackRock, etc.) If you agree to a finite time -- the most common provision of any loan -- you may be caught in the trickbag of owing your bank or broker money before your ARPs mature. If you don't have the cash at that time, you could lose your ARPs to the bank or broker (called foreclosure in the housing business), who may sell it at a substantial discount -- say 30%. Losing 30% on a "cash equivalent" is not healthy.

4. You need to send the Eaton Vance news to your broker and your ARPs issuer. You can email. But I'd prefer you write letters. Explain your financial plight -- you need to pay taxes on April 15, you need to close on a house, you need to pay college bills, etc. While every ARPs issuer in the world by now knows about the Eaton Vance and Aberdeen moves, it does not hurt for your letters to roll in explaining your personal plight. Believe it or not, people who run these funds have families. Some have emotions. And some might actually be sympathetic.

5. Don't forget your dividends. While this plays out, we are still getting our dividends. I'm receiving the equivalent of 7% pre-tax on my Nuveen tax-free preferreds. I'd be happy to sit though the present stockmarket meltdown with this payout from Nuveen, if I felt comfortable that one day soon I could get access to my cash currently locked in Nuveen ARPs.

The stockmarket is in major meltdown: I'm glad I told everyone to get out in mid-November. Most economic indicators are going (or have already gone) negative on us -- employment, inflation, dollar, housing, energy, credit crunch, etc. I don't like writing "gloom and doom," but much of it is spreading. For example, a website called Angelqueen.org writes:

The Impending Economic Chastisement

Although this publication normally avoids matters not immediately related to Catholicism, particularly traditional Catholicism, there are, at times, exceptions to every rule. This is one of those times.

Concerning the economy, there are troubling storm clouds gathering. Records being broken and precedents being set, that when pondered after totaling the sum of their parts, indicate clearly, as the title of this article suggests, that economic chastisement will be a part of all of our lives in the near future. It seems no longer a question of whether or not such chastisement will occur; only how severe it will have been when all is said and done.

The BIG lesson for today's stockmarkets: Do not try and catch a falling knife. This is an old Wall Street expression that means don't try and time the bottom. Don't buy, thinking the stock has hit bottom and has become a "bargain." For evidence, check out all the "super-smart" investors who dumped huge monies into many banks etc. to shore them up in recent months. Virtually all (maybe all) have lost money. Look at Citigroup, for example. Back in November, it received $7.5 billion from the investment arm of the government of Abu Dhabi. At that time, Citigroup's shares were around $30. They're now 33% lower. Abu Dhabi has lost $2.5 billion, so far. (In contrast, I'm short Citigroup.)

More on Auction Rate securities in yesterday's column: It contained a list of readings, people to contact and other useful information. Click here.

The Jawbone BlueTooth headset is superb: I had to return one because it broke. And I had to figure how to get it on and off my ear quickly and comfortably. Now I'm set. I love it. This is the ONLY way to use a cellphone, especially a BlackBerry. With this thing, I can talk in the car and still drive. I can talk on my cellphone and take notes with two hands on my computer. I can walk along the street and actually speak. The thing filters out much outside noise. The thing has saved my weary shoulders. You can buy Jawbone for under $80 from everyone and their uncle, including Amazon. A company called eCost.com has it for $74. Click here. Make sure you plug the charger in the right way. It says "top." Obey it.

Man's best friend. A dog is truly a man's best friend.

If you don't believe it, try this experiment:

Put your dog and your wife in the trunk of your car for an hour.

When you open the trunk, ask yourself, "Who is really happy to see you?"

Three old guys. Three old guys talking:

"Sixty is the worst age to be," said the 60-year-old man. "You always feel like you have to pee and most of the time you stand there and nothing comes out."

"Ah, that's nothin," said the 70-year-old. "When you're seventy, you don't have a bowel movement any more. You take laxatives, eat bran, sit on the toilet all day and nothin' comes out!"

"Actually," said the 80-year -old, "Eighty is the worst age of all."

"Do you have trouble peeing, too?" asked the 60-year old.

"No, I pee every morning at 6:00. I pee like a racehorse on a flatrock; no problem at all."

"You have a problem with your bowel movement?" ....

"No, I have one every morning at 6:30."

"Exasperated, the 60-year-old said, "You pee every morning at 6:00 and crap every morning at 6:30. So what's so bad about being 80?"

"I don't wake up until 7:00."

This column is about my personal search for the perfect investment. I don't give investment advice. For that you have to be registered with regulatory authorities, which I am not. I am a reporter and an investor. I make my daily column -- Monday through Friday -- freely available for three reasons: Writing is good for sorting things out in my brain. Second, the column is research for a book I'm writing called "In Search of the Perfect Investment." Third, I encourage my readers to send me their ideas, concerns and experiences. That way we can all learn together. My email address is . You can't click on my email address. You have to re-type it . This protects me from software scanning the Internet for email addresses to spam. I have no role in choosing the Google ads on this site. Thus I cannot endorse, though some look interesting. If you click on a link, Google may send me money. Please note I'm not suggesting you do. That money, if there is any, may help pay Michael's business school tuition. Read more about Google AdSense, click here and here.
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