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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (19566)	5/2/2014 10:20:50 AM
From: TheNoBoB	1 Recommendation Recommended By hivemind Respond to of 34328

Before I sound like I'm bashing the sector, I do want to point out I have a good amount in BDC's, including a half position in the riskiest vehicle of them all, BDCL. You asked why an operation paying 10% would be priced at 1.0x NAV, and later effectively answered your own question with... If you can hold you nose and just hang on... ...after conceding a greater than 75% price drop in the largest BDC. Yes, that one came back. But the previous 'Big Daddy' BDC -- Allied Capital -- fell more than 80% and didn't come back (it was swallowed by ARCC in 2010 when it was unable to refinance its obligations). American Capital (ACAS) fell 98%, stopped paying its dividend and still hasn't restarted it. MCGC was another -98% victim. It's still 80+% off its highs and recently cut its distribution again. With that kind of risk in the sector, is it any wonder investors require substantial compensation for being asked to 'hold your nose'?