Loading...
Symbols:
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
Transcripts
- IntegraMed America, Inc. Q3 2008 Earnings Call Transcript
- Cell Genesys, Inc. Q3 2008 Earnings Call Transcript
- Columbia Laboratories, Inc. Q3 2008 Earnings Call Transcript
- Pacific Sunwear F3Q08 (Qtr End 11/1/08) Earnings Call Transcript
- Mad Catz Interactive, Inc. F2Q09 (Qtr End 09/30/2008) Earnings Call Transcript
- Provectus Pharmaceuticals, Inc. The Wall Street Analyst Forum Call Transcript
- Point Blank Solutions, Inc. Q3 2008 (Quarter End 9/30/08) Earnings Call Transcript
- Navios Maritime Holdings Inc., Q3 2008 Earnings Call Transcript
- Gran Tierra Energy Inc. Q3 2008 (Qtr End 09/30/08) Earnings Call Transcript
- Oxygen Biotherapeutics, Inc. The Wall Street Analyst Forum Call Transcript
-
Editors' Picks
-
Most Popular
- My Reconsideration: Why Share Buybacks Are Pointless
- Four Commonsense Clues to a Genuine Market Bottom
- GM Could Benefit from Bankruptcy
- Throwing in the Towel on This Market?
- General Electric: Genuine Risk of Collapse?
- Food: Against Self-Sufficiency
- Full list of Editors' Picks »
- General Electric: Genuine Risk of Collapse? »
- Memo to Warren: AmEx Preferred at 15%, Warrants at $12 »
- Peak Oil's Bell Is Ringing »
- Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor? »
- The Pickens Plan Changes Its Strategy »
- Jim Rogers on China »
- Thornburg Mortgage, Inc. The Wall Street Analyst Call Transcript »
- The Biggest Problem Detroit's Big Three Face »
- Tech May Be a Wreck, But This Isn't 2001 »
- Wall Street Breakfast: Must-Know News »
- Precious Metals Will Depose Cash from Its Temporary Throne »
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »
johnheiderscheit
5 Comments
Municipal Bond ETFs and Closed-End Funds
On Sep 01 05:46 PM DaleT wrote:
> Closed end usually sell at a discount to net asset value, and may
> come into favor as tax rates go higher. Anyone know a good AMT free
> closed end intermediate to short maturity closed end fund?
Posing the Right Questions to National Atlantic
Business Development Companies Raising Capital in a Recession
Recession Talk Has Gone From 'If' to 'How Bad'
What is American Capital Strategies Worth?
1) As the author notes a key (perhaps the key) competitive advantage for ACAS is cheap capital. Several sources of cheap capital are, at least temporarily, ieither off the table completely or at least much more expense. First, in the current environment stock offerings will be much less accretive. Second, asset securitizations on good terms may be more difficult. Since the credit market difficulties appeared in July securitizations have been few and far between. Third, bank debt is going to become more expensive.
So I view the current situation as a race between the increasing cost of capital for ACAS and ability to deploy capital on what will certainly be better terms.
2) The chart. Its beyond ugly. Why is today the bottom? Why not tomorrow or a year from now. Financials are in a bear market. The BDC portion of the financial space started declining in early 2007. A bear market typically last 12-24 months. So based on the technicals I suspect a bottom may not be in.
3) Credit quality has been good but not great in a wonderful economic environment. What will happen in a weak or even very weak environment. ACAS's investment classes in 1999-2002 performed very poorly. Essentially, ACAS outran these problems through tremendous balance sheet growth after 2003.
Taken all together, I don't think ACAS is yet a fat pitch.