This week on Plus episode 497, we review David's trade to sell ASGI. We review historical default rates for bonds and CLOs. We also explore why non-U.S. stock valuations are lower today than 20 years ago. … [Read more...]
487 Plus: Bank Loans, CLOs, and Pershing Square’s New Closed-end Fund
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...]
Portfolio Trade: Adding CLO ETF
423: A “Safe” 6% Yield: The Case for Investment Grade CLOs
How leveraged loans and CLOs work and how to invest in them. What are the risks and opportunities with the new CLO ETFs. Topics covered include: What are the characteristics of leveraged loans and how David has invested in them in the past, both professionally and personally. Why LIBOR reference rate for leveraged loans is being phased out What is the current investing climate for leveraged loans How collateralized loan obligation work Why insurance companies are fighting … [Read more...]
305: Are Banks Safe?
Is a bank collapse coming due to bank exposure to collateralized loan obligations as defaults increase? Topics covered include What are collateralized loan obligations (CLOs), how are they structured, and what has been their historical default rates. How much exposure do banks have to CLOs and will it impact your bank savings and investments. What are bank capital ratios and how are they calculated. How banks are more conservatively run due to the adoption of the Basel III … [Read more...]
223 Plus: ETFs vs Index Funds, Vanguard vs Others and Collateralized Fund Obligations
This week September 29, 2018, we compare investing in ETFs to index mutual funds. We also look at whether Vanguard is a better choice than other brokerage options. Finally, we explore a collateralized fund obligation that is backed by private equity cashflows. … [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...]
