QDTE: 40% Yielding Weekly Cash Machine To Buy

Roberts Berzins, CFA
10.29K Followers
(7min)

Summary

  • High-yield opportunities are scarce and often come with significant risks, especially for yields above 8%.
  • Despite skepticism around very high yields (in this case 40%+), QDTE is a rare exception I highly recommend for those seeking substantial portfolio income.
  • In this article, I discuss how QDTE creates value and why its structure comes in handy in the current market environment.
Modern electronic bill counter with money, closeup

Liudmila Chernetska/iStock via Getty Images

In the current market environment, I frankly do not see many high-yielding places, where to park capital without risking the locked-in dividends and/or the invested principal amount.

The thing is that, usually, whenever we see 8%+ yielding securities, the chances are very high that

This article was written by

10.29K Followers
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KBDC, TSLX 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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