PM Images The BlackRock Limited Duration Income (NYSE:BLW) is a closed-end fund that income-focused investors can employ as a method of achieving their goals. As is the case with most fixed-income funds, this one has a reasonable 9.53% yield at the current price. This yield is reasonable, but unfortunately, it does not compare very well…
da-kuk Thesis China has been a hard hit jurisdiction this year when it comes down to stock performance. The Chinese Communist Party (‘CCP’) has taken a number of actions this year to stem the rout in Chinese equities and stimulate the local economy. Among these measures one can find cutting required bank reserves, issuing long-dated…
Richard Darko/iStock via Getty Images Introduction Many may be wondering how well BDCs will fare in 2024, with rates still expected to decline. I am a big believer in the sector and think they are more than just high interest rate environment investments. With the banking crisis roughly a year ago causing tighter lending standards,…
Nomadsoul1 Focus of Article: The focus of this two-part article is a very detailed analysis comparing Ares Capital Corp. (NASDAQ:ARCC) to some of the company’s business development company (“BDC”) peers (all sector peers I currently fully cover). I am writing this two-part article due to the continued requests that such an analysis be specifically performed…
artisteer Overview I frequently ignored Oaktree Specialty Lending (NASDAQ:OCSL) due to the falling share price. I figured that there was no way OCSL had the ability to provide a sufficient level of total return with such a fall in share price. Since inception, the BDC (business development company) is down nearly 47% in price. However,…
valiantsin suprunovich Overview The last time I took a look at Trinity Capital Inc. (NASDAQ:TRIN), I decided to stay on the sidelines and rated the stock a Hold. This was due to the fact that the price traded at a higher premium to NAV (net asset value) than what it averaged over the last 3-year…
Neilson Barnard In our last coverage of Icahn Enterprises L.P. (NASDAQ:IEP), we pointed out that the distribution was nowhere near safe, despite the large initial cut. We expected another one within a year and felt the risks were materially skewed to the downside. Investors have put those warnings on snooze and the stock is flat…
Anton Petrus/Moment via Getty Images The stability of Prospect Capital’s (NASDAQ:PSEC) net asset value was at stake going into its fiscal 2024 second-quarter earnings. This figure had been dipping in the quarters preceding and fell by 33 cents to $8.92 per share during the second quarter or to $3.68 billion on a nominal basis. PSEC’s…
PM Images Overview While my portfolio is already heavy-weighted with BDCs (business development companies), I continue to get pulled in by the appeal of these high yielding opportunities. TSLX has a solid performance history and juicy high yield of 8.6%. Sixth Street Specialty Lending (NYSE:TSLX) operates as a business development company, offering a diverse range…
3D Graphic Design/iStock via Getty Images Introduction I’m sure I speak for everyone when I say we all love a good sale. Especially when some of your favorite stocks are selling at a discount. With interest rates remaining high for the foreseeable future, it’s not easy finding quality business development companies trading at attractive valuations….
champpixs Trading at a big discount to its portfolio’s value with a juicy yield, Barings BDC (NYSE:BBDC) looks like an option for risk-tolerant investors looking for yield. Company Profile BBDC is a business development company (“BDC”). It looks to invest in the debt and equity of middle-market companies that typically have EBITDA of between $15-150…
Brookfield is headquartered in Canada ssuni Brookfield Corporation (NYSE:BN)(TSX:BN:CA) is considered one of the most “complex” financial companies in the world. It consists of a holding company, on top of several wholly-owned subsidiaries, and some partially owned subsidiaries, one of which operates the company’s funds. It’s a confusing structure that has led some to feel…
tadamichi Price relative to NAV is a key consideration for any investor considering a closed-end fund (“CEF”) investment. Currently, many CEFs are trading at historically wide discounts to NAV. There is significant debate amongst academics to explain why CEFs tend to trade at a discount to NAV. One theory is that substantial discounts to NAV…
Yuichiro Chino/Moment via Getty Images OFS Credit Company, Inc. (NASDAQ:OCCI) is a CEF, which invests in CLO structures that are primarily associated with equity lever. The underlying pool of these CLOs is usually comprised of U.S. senior secured loans, which are then further segmented into several tranches starting from the most senior one (e.g., investment…
anouchka Thesis Gabelli Global Deal Fund (NYSE:GDL) is a closed-end fund that is part of famed value investor Mario Gabelli’s GAMCO investment complex. GDL has a long track record of outperforming its benchmark via expert management using a niche investment style. Despite strong performance, GDL trades at a 20% discount to NAV. GDL invests in…
Sean Pavone/iStock via Getty Images Buying stocks at a discount to their intrinsic value is great. For most sectors, establishing this value can sometimes be more art than science. Business development companies have operations built on originating investments with their balance sheet to earn investment income. Hence, their intrinsic value is tethered to net asset…
poco_bw/iStock via Getty Images Portman Ridge Finance (NASDAQ:PTMN) is a small externally managed business development company investing in middle market businesses using a range of financing structures from first lien loans to subordinated debt and equity co-investment. The BDC is broadly sector-neutral with investments in tech firms, food and beverage businesses, and pharmaceuticals. A fully…
William_Potter Introduction Last time I wrote on FS KKR Capital (NYSE:FSK) was back in August in an article titled, “The Road Ahead Looks Promising.” That was right before the BDC reported its Q2 earnings. Some time has passed since reporting Q3 earnings. So, I felt like it was time to take another look at them….
skynesher Please note all $ figures in $CAD, not $USD, unless stated otherwise. Introduction I’m nowhere near the age of retirement, but I can’t deny that I love a good dividend paying stock. Dividends are great because they provide investors with stable, re-occurring streams of income paid out from the company’s cash flows. For retirees…
Nikada The Nuveen Preferred & Income Opportunities Fund (NYSE:JPC) is a CEF which seeks to provide investors with a high current level of income by investing in preferred securities and other high yield securities. I view the preferred securities market sector as one that investors should have exposure to given current high levels of yield,…
Avi Rozen Introduction Ethereum Grayscale Trust (OTCQX:ETHE) is an ETF that invests in and stores Ether. I write this article to reiterate to investors that Ethereum should be thought of as more than a currency; it bears similarities to the equity and commodity asset classes and stands to revolutionize the way we live. Much like…
PPAMPicture/E+ via Getty Images CION Investment (NYSE:CION) has been a relatively under-the-radar middle-market business development company since going public in 2021. The externally managed BDC primarily invests in first lien senior secured loans with total investments at fair value of $1.73 billion across 109 portfolio companies as of the end of its fiscal 2023 third…
Nikada We present our note on Aroundtown (OTCPK:AANNF), the Frankfurt-listed property firm, with a Hold rating. The company has built a real estate empire on the back of low rates and is now facing significant pressure with a different interest rate environment and rental market fundamentals. We will briefly describe the company, its history, and…
Darren415 Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company (“BDC”) sector from both the bottom-up – highlighting individual news and events – as well as the top-down – providing an overview of the broader market. We also try to add some historical context…
Gary Yeowell The John Hancock Financial Opportunities Fund (NYSE:BTO) is a closed-end fund that invests primarily in financial services companies such as banks, asset managers, and insurance companies. This is a sector of the economy that has been adversely affected by the rapid rise in interest rates over the past year or so, mostly because…
RHJ Investment Thesis Yellow Cake (OTCQX:YLLXF) is an investment vehicle focused on uranium, with its primary listing in the UK. I have covered the stock many times in the past, and those articles can be found here. The stock together with other uranium equities, represented by the Sprott Uranium Miners ETF (URNM) in the chart…
Steve King Monroe Capital (NASDAQ:MRCC) last declared a quarterly cash dividend of $0.25 per share, in line with its prior payment and for a 13.5% annualized forward yield. Income is the prize and Monroe’s double-digit yield has moved to pandemic-era highs on the back of what’s been a 17% dip in its common shares over…
Gerardo Huitrón The Mexico Fund (NYSE:MXF) may have risen slightly since I last covered the fund, but if the Bank of Mexico’s (‘Banxico’) extended pause is anything to go by (in stark contrast with other Latin American countries like Brazil), Mexican equities could lag in the near-term. With the labor market also still running strongly…
Kameleon007 Recently, while screening for high yielding fixed income funds, I came across the PCM Fund Inc. (NYSE:PCM). PCM is an under-the-radar credit fund offered by Pimco that pays an attractive 9.7% distribution yield. However, upon further review of the fund, I am concerned that fund’s distribution yield is actually 14.3% on NAV, which appears…