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To: robert b furman who wrote (67886)	3/16/2015 10:04:01 PM
From: Elroy	Read Replies (1) \| Respond to of 95610

By the way the USA does not need to increase its rates. But the stuff that I follow and own is all behaving like the US is going to increase rates. Since money markets don't pay anything, I put my cash into high income generating vehicles like BDCs, mREITs, etc. and they have all suffered share price declines and trade meaningfully below reported book value. The only way that makes sense in a mildly recovering economy is if rates are expected to rise and thus push book values down toward share prices. BDCs yield 10% on average and trade at 0.9x book value on average. If rates are not going to rise, why would something that pays 10% trade below book value? If rates are going to stay where they are I would think BDCs would trade above book value. $10 of stuff that yields $1 per year should be worth more than $10 cash. But in the market $10 of book value that pays $1 per year is only worth $9. I gotta admit I don't understand it. I've always been a stock guy, and BDCs are more like bonds (I think) than a normal company, so I'm not so familiar with how the bond-like instruments discount the future.

To: robert b furman who wrote (67886)	3/17/2015 1:12:05 AM
From: Woody_Nickels	Read Replies (1) \| Respond to of 95610

re: <<It is all part of a coordinated recovery across the globe.>> You give too much credit here, imho.

To: robert b furman who wrote (67886)	3/17/2015 2:05:13 PM
From: FJB	2 Recommendations Recommended By Return to Sender The Ox Read Replies (2) \| Respond to of 95610

This does not look like global recovery. ================================================= Record Low Baltic Dry Casualties Emerge: Third Dry-Bulk Shipper Files For Bankruptcy In Past 3 Weeks Submitted by Tyler Durden on 02/23/2015 09:39 -0400 zerohedge.com The unintended consequences of a money-printed, credit-fueled, mal-investment-boom in commodities (prices - as opposed to physical demand per se) and the downstream signals that sent to any and all industries are starting to bite. The Baltic Dry Index has plunged once again to new record lows and the collapse of the non-financialized 'clean' indicator of the imbalances between global trade demand and freight transport supply has the real-world effects are starting to be felt, as Reuters reports the third dry-bulk shipper this month has filed for bankruptcy... in what shippers call "the worst market conditions since the '80s." Spot the credit-based mal-investment boom After 2 brief days of very marginal gains, The Baltic Dry Index dropped again... As Reuters reports, A third dry cargo shipper has filed for bankruptcy this month following a collapse in freight rates to historic lows in what shippers call the worst market conditions since the 1980s. South Korea's Daebo International Shipping Co Ltd filed a court receivership, a form of corporate bankruptcy, on Feb. 11, mainly due to poor dry bulk market conditions, a company official said on Monday. It is the third known bulk shipper bankruptcy this month. Weaker demand from China and an oversupply of ships has led to the industry downturn, pushing the Baltic dry index .BADI - the industry benchmark for freight rates - to an all-time low this month. The index has slumped by nearly two-thirds in the past 15 months. "The dry bulk market is in a really bad shape, which has hit us hard," the Daebo International official told Reuters by phone. He declined to be identified as he was not authorized to speak to media. "We did our best but we cannot help it." ... Daebo International mainly provides panamax-sized dry bulk shipping services such as iron ore, coal, grains and steel products, according to its website. South Korea is the latest major shipping country to be hit by a bankruptcy in the sector. China's Winland Ocean Shipping Corp filed for Chapter 11 bankruptcy protection in the United States on Feb. 12, court documents show, also citing difficult market conditions. In Denmark, privately owned Copenship filed for bankruptcy earlier in February after losses in the dry bulk market. "The combination of lower steel demand in China and the huge volume of new tonnage coming on line is what is causing panic and making this the worst bulk market since the mid-1980s," Hsu Chih-chien, chairman of Hong Kong and Singapore-listed dry bulk shipper Courage Marine said this month.