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  • BDCS And BDCL Are Yielding 7.56% And 16.55%, But What Are The Risks? [View article]
    Reuben,

    Your faith is misplaced. The latest spreadsheet from Wells Fargo tells a very different story. If you like I can send it to you.
    Sep 25 11:22 PM | Likes Like |Link to Comment
  • BDCS And BDCL Are Yielding 7.56% And 16.55%, But What Are The Risks? [View article]
    Complete weighting of the Wells Fargo BDC Index have been published by SA author BDC Buzz, here: http://bit.ly/1v0f1BH
    Sep 25 03:46 PM | 1 Like Like |Link to Comment
  • BDCS And BDCL Are Yielding 7.56% And 16.55%, But What Are The Risks? [View article]
    turk618,

    That expense ratio is incorrect. See my comment below.
    Sep 25 03:43 PM | Likes Like |Link to Comment
  • BDCS And BDCL Are Yielding 7.56% And 16.55%, But What Are The Risks? [View article]
    Interesting introduction. There are several factual errors that I would like to address:

    "The overall liability structure of the BDCs are set at a fixed rate."

    This is not true. BDCs can borrow at both fixed rates and variable rates. For example, ARCC has a revolving credit facility that it can draw on at LIBOR plus 200 basis points.

    The expense rate for BDCL is not 0.85%. It is 0.85% + 0.40% + 3 month LIBOR, so currently it is 1.48%.
    Sep 25 03:42 PM | 1 Like Like |Link to Comment
  • High-Yield BDCs For Q3 2014: Part 3 [View article]
    I compared the weightings to market caps reported by Capital IQ (FAST Graphs) and did not get a match. I have queried UBS and will report their answer.

    One other nugget from the spreadsheet. The index is rebalanced quarterly.
    Sep 25 02:37 PM | Likes Like |Link to Comment
  • How Higher-Yield Stocks Decrease Risk In Dividend Growth Portfolios [View article]
    I coped with the inflation of the 70s in two ways: successfully, and unsuccessfully.

    I was successful in advancing my career and earning an ever growing income. Best investment I ever made.

    I was unsuccessful in my investments in gold and silver bullion. What a waste of money. I still have both, and look at them as examples of how following the herd is a very good way to lose money. Every time I read an article about how Altria or PMI is doomed, I just count all the dividends I receive and reinvest.
    Sep 25 01:07 AM | 4 Likes Like |Link to Comment
  • BDCL Will Pay A Lower Quarterly Dividend, But Still Be Yielding 15.5% [View article]
    BDCL is a bond issued by UBS, which is a Swiss company.
    Sep 25 12:40 AM | Likes Like |Link to Comment
  • If STAG Industrial Was A Car It Would Be A Mustang [View article]
    MACD is also very oversold. Looks like a bargain to me.
    Sep 25 12:34 AM | Likes Like |Link to Comment
  • TPG Specialty Lending: BDC Risk Profiles [View article]
    P/B is available now in SA portfolios.
    Sep 25 12:21 AM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Augustus,

    You sound a lot like me. I do not reinvest any mREIT dividends. I use them to start or increase positions mostly in eREITs.
    Sep 25 12:18 AM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    D#1,

    I am not trying to rain on your parade, but you need to be aware that your belief about the slope of the yield curve going negative being a rare event over the last 50 years is just not so. Take a look at this link: http://bit.ly/15BMN4V

    Press the 'animate' button. You will see that the slope of the yield curve went negative in 2000 and 2006. Not a rare event at all.
    Sep 25 12:16 AM | 2 Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Dividends#1,

    "I do not see AGNC cutting their dividend 70% from its current level."

    It can happen, easily. All it takes is a negative slope on the yield curve.

    Look at what happened to the NLY dividend the last time the slope of the yield curve went negative, in 2006. NLY paid $1.98 in dividends in 2004 and $0.57 in 2006, for a net change of -71%.
    Sep 24 12:08 PM | 1 Like Like |Link to Comment
  • BDCL Will Pay A Lower Quarterly Dividend, But Still Be Yielding 15.5% [View article]
    RM13,

    Just to be clear - the devil is in the details - the owners of shares in the 2x leveraged ETNs will never receive a margin call.

    It is possible to be forcibly stopped out, which can occur in either of two circumstances:

    1) the indicative value of the ETN drops to $5.

    2) if at any time during a single month, the indicative value of the ETN decreases by 60% from its value at the start of the month. Since these are 2x leveraged, this is the equivalent of the linked index dropping by 30% from its value at the start of the month.

    Thus, if the index declines by 25% from its value at the start of June to its low point in June, coincidentally the last day, and then declines by 25% from its value at the start of July, to its low point in July, for a two month net change of -43.75%, you will not be stopped out. You will also not receive a margin call.

    Assume the theoretical worst case in which the linked index drops to zero. You will be forced out when the indicative value drops to $5 and before it hits zero. You will not lose all of your money.
    Sep 24 11:52 AM | 1 Like Like |Link to Comment
  • BDCL Will Pay A Lower Quarterly Dividend, But Still Be Yielding 15.5% [View article]
    RM13,

    What do you consider to be a 'meaningful downturn'?
    Sep 24 10:58 AM | Likes Like |Link to Comment
  • BDCL Will Pay A Lower Quarterly Dividend, But Still Be Yielding 15.5% [View article]
    One advantage of using the 2x leveraged ETNs as-is for your margin is that you will never get a margin call.
    Sep 24 10:58 AM | 2 Likes Like |Link to Comment
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