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Earn 8.2% From NMFC's Reliable Baby Bonds
Summary
- NMFCZ offers a compelling 8% yield-to-maturity backed by investment-grade credit ratings.
- The company has multiple levers to pull to protect its balance sheet.
- NMFC maintains conservative leverage, stable coverage ratios, and high portfolio quality, with 96–97% of loans rated low-risk and minimal non-accruals.
- Despite modest NAV erosion and a recent dividend cut, NMFCZ's risk/reward profile is attractive for income investors; I rate NMFCZ a BUY.
- As a fixed income investor, I focus on high yielding and safe fixed income & dividend opportunities. I specialize in niches such as baby bonds and preferred stocks.
As a fixed income investor, I focus on high yielding and safe fixed income & dividend opportunities. I specialize in niches such as baby bonds and preferred stocks, but also invest in regular corporate bonds, high yielding equities, BDCs and more.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of NMFC, NMFCZ 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.
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