In this week's Plus episode, we clarify some points from our private credit discussion in episode 509. We look at the risks with Barings Corporate Investors (MCI) selling at a 30% premium to its net asset value. We discuss why fees for ETFs that invest in BDCs are so high. Finally, we discuss Ashwath Damodaran's post on why U.S. small-cap and value stocks have underperformed. … [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...]
467 Plus: Fallen Angels, BBB Bonds, Swapping Out Leveraged Loans Funds, and How to Use the Investment Conditions Report
In Plus episode 467, we explain the resources on Money for the Rest of Us Plus to learn about different asset classes. We explore investing in fallen angel bonds, which are bonds that have recently been downgraded to non-investment grade status. We also explore investing in BBB bonds. David explains his recent portfolio change to swap out his leveraged loan exposure. Finally, we review how to use the investment conditions and strategy report. … [Read more...]
386: When Should You Pay a Premium?
What are examples of when it makes sense to pay more than the usual price or fair value for an item or asset? Topics covered include: Why we are willing to pay a premium for convenience, scarcity, status, and to avoid wasteWhat is the difference between net asset value and book valueWhy business development companies can sell at a premiumWhy farmland REITs sell at a premiumWhy closed-end funds sell at a premiumHow to decide whether to pay a premium or not Show Notes The Fall … [Read more...]
381: Investing in Business Development Companies (BDCs) and other Niche Assets That Trade on Stock Exchanges
We review the ten asset categories that trade on major stock exchanges, many of which are smaller niches in which individual investors have an edge over institutional investors. How to invest in business development companies, a small segment of the markets that has returned 9% annualized with dividend yields of 8%. Topics covered include: How securities trading has changed and why are there so many trading platformsWhy do institutions still pay trading commissionsWhen did stock … [Read more...]
227 Plus: Mutual Fund Share Classes, TIAA, BDCs and Evaluating Bond Options
This week October 27, 2018, we look at how different mutual fund share classes work. We review a member's fixed income options and take a look at some options from TIAA. Finally, we explore business development corporations, particularly an offering from Oaktree Capital, Howard Mark's investment firm. … [Read more...]
MNY120 Plus: Investing In Business Development Corporations
This week on Money For the Rest of Us Plus we look at characteristics of business development corporations and whether they are goods investments. The episode also discusses institutional money market funds and provides an update on David's peer-to-peer lending investments. The episode length is 20 minutes. … [Read more...]
