Yield Hunting Part 18: Horizon Technology And 8.5%+ From Its Baby Bonds

Summary

  • Horizon Technology Finance offers two baby bonds, HTFB and HTFC, with HTFC currently presenting a strong buy opportunity at an 8.26% yield to maturity.
  • HTFC's market price is $24.14, trading below its NAV, with a yield significantly higher than sector benchmarks, making it an attractive investment.
  • HRZN's overall credit score is Ba1, indicating higher risk, but HTFC's current yield justifies a buy recommendation for potential returns up to 12%.
  • Investors should act quickly, as HTFC's favorable yield conditions may not last, presenting a timely opportunity for substantial returns.

Yield Road Sign Post Over a Blue Sky

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Today, we will return to one of the largest positions, which you can also read about in our older articles. Namely, this is Horizon Technology Finance (NASDAQ:HRZN) and its baby bonds. The truth is that several wavy movements

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This article was written by

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Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.

Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of HTFC 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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