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Strategies & Market Trends : Dividend investing for retirement
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Thehammer
To: Thehammer who wrote (24065)12/15/2015 11:00:37 PM
From: Elroy1 Recommendation   of 34328
 
PSEC has said that they have an external firm do the NAV valuation work each quarter, so it's largely out of their hands. I think PSEC approves the final NAV determination, and perhaps approves each mark, but they do have an external firm that prices the assets.
It's odd how the other BDCs with large CLO exposure had their NAV PLUMMET in Q3, and PSEC will it's large NAV exposure did not. PSEC's valuation method - even if performed by an external firm - must be different.

And it may make sense. If the CLO valuations are plummeting, but there are no defaults (and no defaults coming down the pike), it's sort of logical to say the standard valuation method used by other CLO-focused BDCs - which shows a lower NAV - is wrong.

One would think that if PSEC's assets are really worth anything near $10 per share, some financial firm would offer to acquire PSEC for $8.00 per share, and liquidate PSEC. Why not?
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