In Plus episode 487, we answer some members' questions on bank loans and collateralized loan obligations. We also analyze Pershing Square USA (PSUS), Bill Ackman's anticipated closed-end fund initial public offering. … [Read more...]
483 Plus: Private Credit, BDCs, CLOs, Cash Balances and Is This Portfolio Too Aggressive
In Plus episode 483, we analyze the Virtus Private Credit ETF (VPC), which invests in business development companies (BDCs), leveraged loans, and collateralized loan obligations (CLOs). We review the characteristics of all those asset categories. We also discuss the appropriate cash balance for retirees and consider whether a retired member's portfolio has too much in stocks. … [Read more...]
452: Beyond Stocks: The Allure and Strategy of Credit Investments
Investing in non-investment grade bonds, leveraged loans, and preferred stocks is potentially more compelling than investing in common stocks at present. Topics covered include: Why Howard Marks told institutional clients to sell stocks and buy high-yield bonds instead The contractual agreements comprising bonds, leveraged loans, and preferred stock give them an advantage relative to common stocks How preferred equity exhibits attributes of both bonds and common stocks What … [Read more...]
234 Plus: December 2018 Mid Month Update, Bank Loan Funds, and a Member Profile
This week December 18, 2018, we provide an update on investment conditions including looking at how soon after a stock market peak do recessions start, assuming there is a recession. We also look at what PMI data was prior to the previous two recessions. We revisit bank loan fund investing. Finally, we share some thoughts on a how a member can reach $1 million in assets. … [Read more...]
206: Be Bear Aware of Bank Loans
Why the leveraged loan market (i.e. bank loans) is becoming more risky. What are collateralized loan obligations and how do they influence bank loans. Why I will sell my bank loans fund when the economy turns. Photo by Paul Wellner Bou In this episode you’ll learn: What are the characteristics of bank loans. How bank loan prices adjust based on expectations regarding default. Why bank loans are getting more risky. What have bank loans returns historically. Show … [Read more...]
203 Plus: Fixed Income Options and Rebalancing To The Model Portfolios
This week May 5, 2018, we analyze various fixed income options given rising short-term rates. We also focus on the risk of bank loan funds. We also review a challenge a member is having in rebalancing his portfolio to the model portfolios. … [Read more...]
MNY141 Plus: Currency Hedging, Closed End Bank Loan Funds and Investing In Economic Sectors
This week January 21, 2017 on Money For the Rest of Us Plus we look at the risks of investing in bank loans via closed end funds. What does it mean to hedge currency risk and is investing in economic sectors likes technology, healthcare, etc. a viable strategy. … [Read more...]
MNY087 Plus: Dollar Cost Averaging and Credit Risk
This week on Money For the Rest of Us Plus I answer Hub member questions regarding investing large lump sums and whether bank loans (i.e. floating rate bonds) are a good substitute for investment grade bonds in order to protect against rising interest rates. The episode length is 16 minutes. MNY087 Plus View and Listen To Other Plus Episodes Audio Download Download the audio file Transcript Welcome to Money For The Rest of Us Plus, this is the companion episode to Episode 87, Is This … [Read more...]
