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elliot_mllr

elliot_mllr
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  • Here's An Ideal Way To Earn High Yields And Prepare Your Portfolio For Rising Rates [View article]
    Hawkinvest:
    One unanswered question is whether the investments owned by Fifth Street Floating Rate Corp. have a LIBOR floor before interest rate increases are reflected in increased rates paid to the company. Many floating rate funds have 100 or 150 basis point floors and rates do not increase until that floor is exceeded.
    Another question unanswered by the article is why the company needed to do the offering at a significant discount to NAV.
    Elliot Miller
    Aug 30 01:18 PM | 1 Like Like |Link to Comment
  • A Conversation With Prospect's Grier Eliasek [View article]
    Dividend Sleuth:
    As did many other readers, I congratulate and thank you for that fine piece of interviewing and analysis.
    Like you, I am a former PSEC shareholder. I sold out of concern for CLO investments but primarily because of the fear that since dividends exceed NII and the spillover will run out, the dividend might be cut and the share price materially adversely impacted. I own HTGC, MCC, NMFC, KCAP and TCPC. I am watching KCAP carefully as well and may sell that also.
    In all candor, I can't figure out if PSEC's rationale for externally managed BDCs is bona fide or specious. I see no inherent reason why an internally managed BDC should have any difficulty in attracting talent. On the other hand management's $50 million investment in PSEC is meaningful. I wonder, however, how it compares to their investment in the external manager.
    In any event, your article was cogent and entirely objective and therefore valuable.
    Elliot Miller
    Aug 30 01:08 PM | Likes Like |Link to Comment
  • Time To Take Linn Energy Out Of The Penalty Box? [View article]
    Casey:
    I believe that a paydown of debt is higher on the priority list of Linn management than an increased payout, and I for one agree.
    Elliot Miller
    Aug 27 02:02 PM | 1 Like Like |Link to Comment
  • Time To Take Linn Energy Out Of The Penalty Box? [View article]
    Rather than an increase in distributions/ dividends, Linn will undoubtedly reduce debt first.
    Elliot Miller
    Aug 27 02:00 PM | 1 Like Like |Link to Comment
  • Time To Take Linn Energy Out Of The Penalty Box? [View article]
    Voice from Chapel Hill:
    I think that the arbitrageurs will make certain that LINE and LNCO stay pretty much aligned in price.
    Elliot Miller
    Aug 27 01:58 PM | Likes Like |Link to Comment
  • Transocean's 8% Yield Can't Even Help A Tough Offshore Drilling Complex [View article]
    That should have been RIGP, not RICP. Sorry for the typo.
    Aug 25 10:13 AM | Likes Like |Link to Comment
  • Transocean's 8% Yield Can't Even Help A Tough Offshore Drilling Complex [View article]
    Why has no Commentator even mentioned RICP, the new MLP? RIG has assigned to it only rigs under contract and as I recall the average unexpired term is 4 years. I don't recall the age or type of the rigs, however.
    Elliot Miller
    Aug 25 10:12 AM | Likes Like |Link to Comment
  • The High-Yield BDC Portfolio For Q3 2014 [View article]
    MCC just did so.
    Aug 21 11:01 AM | Likes Like |Link to Comment
  • Fifth Street Senior Floating Rate's Recent Material Equity Offering And Its Impact On NAV [View article]
    Mr. Kennedy:
    That is a very helpful article.
    However, many other BDCs also request annual shareholder authorization to issue shares at below NAV. They justify doing so on the ground that under volatile market conditions prevailing at the time of the offering they will be able to make highly opportunistic investments and will need the capital to do so, and those investments will make up for the dilution. I suppose that it all comes down to trusting management competence, but I have never supported such authorizations and I only invest in companies whose managements I trust are competent.
    Elliot Miller
    Aug 19 12:35 PM | 2 Likes Like |Link to Comment
  • Enterprise Products Partners LP: Great Company, Not A Great Stock [View article]
    Not to mention the inspired leadership of Dan Duncan, the continued support by his heirs, the enlightened TEPPCO acquisition, current management and a host of other attributes. I own EPD at $22.43 with a yield on cost of 12.3%, and I wouldn't think of selling. For me not only is EPD a great company but its units have been a superb investment and I am confident that they will continue to be in the future.
    Elliot Miller
    Aug 18 04:18 PM | 3 Likes Like |Link to Comment
  • The Misleading Story About George Soros's Filing [View article]
    It is an utter shame that few--if any--in the financial media will see this article, and of those that see it few will understand it.
    Elliot Miller
    Aug 16 11:17 AM | 3 Likes Like |Link to Comment
  • 7.7% Yielding Hercules Added To Portfolio [View article]
    Dividend Sleuth:
    Thanks very much for your comments.
    My taxable portfolio is invested in MLPs and my tax qualified retirement portfolio is invested in BDCs. I also have cash in each as dry powder.
    Elliot
    Aug 15 03:01 PM | 1 Like Like |Link to Comment
  • 7.7% Yielding Hercules Added To Portfolio [View article]
    Dividend Sleuth/ BDC Buzz/ Wall Street Titian:
    While I certainly agree that issuing shares at a price above NAV is desirable, I note that many well run BDCs annually solicit shareholder approval to issue shares at a price below (and dilutive to) NAV. The rationale for doing so is that at such times new capital is a necessity and there are investing opportunities available for that capital which can make up the dilution.
    Elliot Miller
    Aug 15 02:59 PM | Likes Like |Link to Comment
  • Is Prospect Capital Ready For Rising Rates? [View article]
    BDC Buzz:
    My unasked -for advice is to ignore these cranks and conspiracy theorists and just continue to turn out analytical, well researched and factually helpful articles as you have been doing.
    Elliot Miller
    Aug 15 02:43 PM | 3 Likes Like |Link to Comment
  • Is Prospect Capital Ready For Rising Rates? [View article]
    BDC Buzz/ Chancer/awg:
    And, in addition to Buzz's points, when the BDCs do convert their borrowings to fixed rates it will be at meaningfully higher levels than they are paying now. The concern is that the 125 bp LIBOR floor will keep the NII inhibited for some time during which the value of the investments, and hence NAV, will decline and the market price along with it. Having said that, I do own a portfolio of BDCs, including--so far--PSEC, and I don't think that any has investments which are floating rate without a LIBOR floor of at least 100bp.
    Elliot Miller
    Aug 14 11:24 AM | 2 Likes Like |Link to Comment
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