The first objective is to provide a high level of current income. The second objective is to seek preservation of capital to the extent consistent with the primary goal. Under normal market conditions, it is expected to maintain duration of less than one y
Friday, Feb 152013, 12:24 PMInflows into leveraged loan funds hit another record last week, according to BAML, $1.5B vs. $1.3B the previous week. This paper - often created in the process of LBOs - is higher up in the capital structure than other debt and typically variable-rate. An ETF: BKLN. Closed-end funds: PHD, [JFR, EFR, EFT, JRO. |Friday, Feb 152013, 12:24 PM| Comment!
Sunday, Dec 162012, 9:10 AMYield starved investors are not without hope, says Jim Grant, suggesting (the 9 min. mark) two BDCs - Ares Capital (ARCC) and Golub Capital (GBDC) - both of whom had very good credit experience even in the last brutal cycle. Also consider leveraged loan funds - yes, they invest in leveraged companies, but they have the senior-most claims, and the loans performed well even during 2007-09. Andrew Boral has a nice article describing a few. |Sunday, Dec 162012, 9:10 AM| 4 Comments
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