SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Dividend investing for retirement
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Thehammer who wrote (24062)12/15/2015 9:43:38 PM
From: Elroy  Read Replies (2) of 34328
 
Yeah, and it's nice to collect a dividend while waiting.

My hunch on PSEC is that they aren't marking their so so loans (and CLO investments) to market prices, they are instead using some internal valuation method which is based on PSEC's historical default numbers, which are quite low. So even though other BDCs with high CLO exposure are suffering large NAV paper losses due to marks (TICC and OXLC come to mind), PSEC is marking their loans where they think they should be based on their own expectations of defaults, not the market's expectatins of defaults, so PSEC's reported NAV is not declining much, but the market is pricing PSEC's share price as if the NAV had paper losses.
Actually, I just made that up, I have no idea what's going on!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News