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Strategies & Market Trends : Value Investing

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To: Sergio H who wrote (47845)5/8/2012 3:18:21 PM
From: Spekulatius2 Recommendations  Read Replies (4) of 78666
 
re BDC -
Aren't BDC just crappy junk bonds with leverage in disguise. They have nothing to do with private equity, although there are a few that take stakes in smaller companies as well.

Based on my observations, BDC are mostly a Ponzi scheme catering to investors reaching for yield a bit too far. 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. These are not stocks you want to own if there are any problems in the credit market.
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