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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (47846)	5/8/2012 3:52:00 PM
From: Sergio H	6 Recommendations Read Replies (1) of 78676

Maybe start at Winkipedia which has more correct information than your post. en.wikipedia.org BDCs are not for everyone but no one should read your post in determining if a BDC is right for them. <Aren't BDC just crappy junk bonds with leverage in disguise. > No. Don't know of any BDCs that offer crappy bonds with leverage in disguise. Please show me one. <They have nothing to do with private equity, although there are a few that take stakes in smaller companies as well.> Wrong. Most BDCs are involved in private equity in one way or another. <Based on my observations, BDC are mostly a Ponzi scheme catering to investors reaching for yield a bit too far.> Please show one example of where a BDC is similar to a Ponzi scheme. <in most cases, the yield is just a return on capital, either directly, or the loans are so risky that a default rate erodes the principal. > Not true. BDCs are governed by law on what they pay out to investors. <These are not stocks you want to own if there are any problems in the credit market.> Why is the risk greater for a BDC if there are problems in the credit market?

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