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: inspbudget who wrote (24108)12/26/2015 2:26:31 PM
From: E_K_S  Read Replies (1) of 34328
 
Re:PSEC

Here is what their portfolio was/is from their Web site (as of May 6, 2015). It is comprised of three types of assets: (1) secured debt, (2) unsecured debt and (3) equity. The big problem is how these assets are priced especially there is little to no market (ie ill-liquid), equities are not traded but in most cases are private equity so limited no buyers, and both types of debt (secured and un-secured) would have to be significantly discounted to liquidate.



----------------------------------------------------------------------------------

If I were a buyer of any BDC, I would own a basket of these companies and/or an ETF. I would be careful making any investment in a deflationary market environment and would not base the value on the company's NAV calculation just because in a fire sale environment, one might be lucky to get $0.50 on the dollar. The positive is most of these assets are U.S. companies (very little foreign country and/or currency risk). I would think that if any sale and/or liquidation was necessary it would be done to(1) large corporate owners of similar businesses, (2) other private equity BDC companies and/or (3) Warren Buffet value investors operators and/or turn around Private Equity.

The BDC business is a 'niche' business and everything is about management, their long term experience, and their contacts in the industry buying/selling distressed assets.

EKS
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