Credit Investing Looks More Attractive Than Ever (Turn Off CNBC!)

Oct. 12, 2022 1:09 PM ETAFT, ARCC, BBDC, BIZD, CGBD, HYT, ISD, PFL, PFN, VVR84 Comments

Summary

  • I have often compared CNBC to the ESPN sports network, with panels of experts giving non-stop commentary on the sports or financial worlds.
  • Both have the same business model: get viewers addicted so they'll watch all the time, regardless of whatever is happening.
  • Unfortunately, it tends to encourage investors to believe that attention to the minute-to-minute, day-to-day changes in prices is the key to successful investing.
  • And, obviously, that "growth" in the market price of your securities is the be-all and end-all.
  • Of course, our Income Factory® strategy replaces that focus on "price growth" with a focus on "income growth", recognizing that the ability to produce income is what ultimately drives economic value.
  • Looking for more investing ideas like this one? Get them exclusively at Inside the Income Factory. Learn More »

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Quick Primer on Credit Investing

I've written for years about the value of "credit investing" where you are betting on companies to merely stay alive and pay their bills; but not expecting or requiring them to

I launched Inside the Income Factory because many of my 12,800+ followers and readers of The Income Factory® (McGraw-Hill, 2020) asked for more interactive dialogue. Here's what members say: 

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This article was written by

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Steven Bavaria publishes a boutique marketplace service - Inside the Income Factory® - here on Seeking Alpha, which helps members implement the strategy outlined in his book "The Income Factory: An Investor’s Guide to Consistent Lifetime Returns" (McGraw Hill, 2020).

  

Bavaria introduced the Income Factory philosophy in his Seeking Alpha articles over the past ten years, drawing on his fifty years experience in credit, investing, journalism and international banking. His earlier book "Too Greedy for Adam Smith: CEO Pay and the Demise of Capitalism" exposes the excesses in the CEO pay arena. Both books are available on Amazon. 


Bavaria began his career at the Bank of Boston, handling international credit workouts that included managing a fleet of ships, chasing a Vatican-owned bank in Switzerland, and leading the turnaround of troubled branches in Australia and Panama.

Later he worked at Standard & Poor's, where he introduced credit ratings to the leveraged loan market, helping to open the loan asset class to pensions, mutual funds and specialized investment vehicles like CLOs.

Bavaria graduated from Georgetown University and New England School of Law. He lives in Ponte Vedra, Florida.

Disclosure: I/we have a beneficial long position in the shares of AFT, HYT, ARCC, BBDC, CGBD, ISD, BIZD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: My articles published on Inside the Income Factory or elsewhere on Seeking Alpha, including comments, chat room and other messages, represent my own opinion based on personal knowledge and experience. I am not an investment “expert,” counselor or professional advisor, and while my articles may reflect substantially the strategies I employ in my own investing, there is no assurance that these strategies will be successful, either for me personally or for my readers. In other words, while I do my best, there is no warranty or guarantee that the ideas expressed are correct or accurate, and I urge all readers to take my opinions for what they are – “opinions” – and to do your own due diligence on, and check out personally, every investment idea, stock or fund that I may present, so you can make your own informed decisions.

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