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To: MCsweet who wrote (47922)5/11/2012 11:39:18 PM
From: Sergio H3 Recommendations  Read Replies (1) | Respond to of 78666
 
I got turned off when Clownbuck stated that BDCs are not private equity investments. The rest of his argument pertains to I am not sure what.

There are various degrees of risk associated with every type of investment but not inherent to the investment vehicle. For example, there are stocks that are shams, but that does not mean that all stocks are shams. I did not entertain further discussion with Clownbuck because his post was simply not worth it.

I do disagree with your statement that BDCs are not good to own in a credit crises. It depends on the BDC.

seekingalpha.com



To: MCsweet who wrote (47922)5/12/2012 2:50:35 AM
From: Spekulatius1 Recommendation  Respond to of 78666
 
McSweet, this was a pretty well balanced post regarding BDC. I agree that senior debt (or even subordinated debt) of BDC's is interesting, if the coupons are right, because the leverage limits for BDC's should protect bond holders and BDC will probably try to raise equity even with very unfavorable terms, before they default.