No. Secured by real collateral. I have been in contact with IR. Weighted average Libor floor of 1% on floating assets. Oh and look back since 2010... they have had a stable NAV since 2011, and experienced 10% NAV growth in 2010. Current NAV of $22.44. So you don't like to put faith in the NAV numbers.. but it is done by a third party and the loans are all performing. With the new partnership they are going to drive earnings growth and increase the dividend. So you can buy it down here at a huge discount to NAV and ride it back up or don't. The quality of the investments are much better than most BDCs... The management team is pretty good and has the most ownership of any of these BDC managers. 6% stake.
No, I did not know they partnered with Pimco? Why should it matter? Many of these loans are marked to par or above.. that's just strange. marked right at par.
Senior secured by what? A holding company? Companies can get realllll cute with how things are structured. But hey, you like it. have fun.
first thing I noticed was the low amount of option volume in all strikes. Trying to get a fill is a pain-in-the-lenloc...............key is to keep it small I guess.
"At June 30, 2014, our portfolio consisted of 43 portfolio companies and was invested 43.9% in senior secured loans excluding Crystal Financial, 30.4% in Crystal Financial whose portfolio is 100% comprised of senior secured loans, 18.3% in subordinated debt, 2.3% in preferred equity and 5.1% in common equity and warrants excluding Crystal Financial, measured at fair value."
So... 74.3% senior secured loans, 18.3% sub, 2.3% preferred, 5.1% common equity and warrants. I think that is awesome mix. No non-performing assets. Stable NAV for years. History of NAV recovery from mark-to-market declines. Good credit quality. I like this lender. The portfolio has improved meaningfully since 2011. Yield has come down but only because they did not want to reach for yield like PSEC and some of the other BDCs. But with the new JV I see income going up because the yield on that is gonna be higher than current portfolio weighted yield. They just partnered with PIMCO you know. (in September)
the real money maker is long dated AAPL high strike dreamium calls. Sell the #$%$ out of them. Just a warning that every time a higher strike (highest is 155) comes out, the premium shifts a little upwards.. because some idiot is buying the next highest one and that makes the former "highest" strikes look cheap..
155 for 5 is like saying (assuming 5.78 bil share count):
buy the company for 895.9billion and pay a ~29 billion premium just for that option. People tend to not think of it like that I guess.
been there done that! just closed it today.. Got assigned on 630 calls last earnings release.. My sale basis was forever 645.. I sold puts on it weekly.. sometimes calls. Prior to earnings I was short in various quantities the following strikes:
670 put (32 prem)
630 put (16.60 prem)
705 call (7.80 prem)
712.50 call (7.20 prem)
It was ugly at first but it turned out terrific. The (lack) of liquidity is a terrible terrible thing. I wouldn't do it again. Bid/ask spreads are ridiculous. Which is why the opt prem is high (those have high bid/ask spreads too)
good trading there alkkov........................the stock is only 1.89% short because of past performance.............................................they recovered every time from a bad earnings report................................so is this time any different? Well, nothing lasts forever but the earth and sky, and Lana Turners thighs.
Don't put much faith in the book value of a BDC. 99.99999% of those loans made to craptastic companies are not exactly marketable.. and definitely not in a 'distressed scenario'. Since there is no market for these loans.. or a very thin and "buddy-buddy" kinda market.. well.. mark to market valuation of these things is kind of a joke.. Do you see how many are marked to par on their balance sheet? Hell, even the PIK bond is close to par. That's not very nice.
It goes.. it's valued at par, same as cost
it's valued at par, same as cost..
aannnndd it's gone.
heh, or sold some uncovered calls. That stock is a good laugh. All the finest muppet tamers on TV saying "Yeah, good growth" growth growth cloud cloud.. blah blah. I don't think they'll be able to convince too many people. Greater fools are all tapped out. Can you believe the short interest is something like 1.89%? What used to make the stock go V shaped after their obligatory garbage "earnings" miss was people would short it when the reaction was muted on horrible results.. and the pre-existing short positions would get nervous and cover.. and then it would be this rocket-like short squeeze.. Many-a-muppety fund manager owns this #$%$ (for their clients).. and before, a syndicated short squeeze could be performed.. but now.. with the ever increasing float and 0 interest from would-be 'shorts'.. not going to happen.
I usually sell uncovered calls, and if ever it goes past my short call strike.. I get assigned.. get short at the adjusted sale basis.. and THEN I sell puts (as a way of buying to cover). That's the plan. But woe is me, I have never been assigned. Just keep reaping that premium.
well you see the bdcs crashing at times when iwm was under attack
much more then mtge which has the protection of the agency part
big risk big reward on this trade
if the market cracks slrc is toast and if the market holds up and goes up slrc should do well
not similar really so more of a less risk versus more risk type of trade then a good pairing
You can always switch back when the price of SLRC goes above the price of MTGE and get more shares that way. (Stock swap, get more shares of SLRC than you had of MTGE, Then swap to MTGE later and keep the higher level of shares)
600 TO 2400 EACH DOLLAR IN THAT AS A CREDIT HEDGE ON MY PREFS
ANOTHER GUY GOT 600 EACH DOLLAR HIGHER AND FFLASH DISSAPEAR AND ITS RIGHT BACK DOWN
THATS 1800 BUCKS
Look, rates are not going anywhere. What we are likely to see is a situation where interest rates on the short part of the yield curve will go up and the long end will behave well. So from a mark to market basis, the NAV will improve significantly over the next 4 quarters or so. So what does that mean for MTGE and AGNC? In the short term it means higher NAVs, stable earnings, and higher stock prices. (well at least in theory higher stock prices). It's been such a long time since I have seen MTGE trade up near $25.. and I think we could see that price again in the next 12 months. So just be patient. There is no reason to sell.
wow.. I had a buy order in at 18.88... Missed that stop-loss pinata by 1c. Sell put premium on this.. VWAP for the day was ~19.545. Prior to move from 19.48 to 18.90 (it happened quickly)... it was 19.745. I'm a big fan of strife/struggle.. (need a little bit for subsequent progress). Looks like I hit my struggle quota on this position.