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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Sergio H who wrote (47397)4/11/2012 11:12:22 AM
From: E_K_S  Read Replies (2) | Respond to of 78753
 
Hi Sergio -

Some good ideas on what to watch for when evaluating BDC's. I have added PSEC to my BDC watch list. I noticed that PSEC has priced a $130M 5.375% 5.5 year unsecured senior notes due 10/2017. Seems like pretty cheap money if after they loan it they can get it back.

Have you ever seen a BDC make a loan where they receive an equity interest in the company they make the loan to? Seems to me that if I can accumulate a basket of small equity ownership as well as get my loan money back, that might provide a nice "future" growth kicker.

EKS