So most of us have seen how this plays out or doesn't, depending upon your religion. The faithful will hold whether the Mideast erupts or New York, for that matter, while folks like me will cash out and wait for the nuclear cloud to settle. Who's nuts? Perspective, I suppose.
What good will my cash do when the dollar just imploded with the Federal Bank blown to bits(melt). Sheesh, no more Fiat money, what's my QE4 hedge to do? I was counting on more competition for Gary.
So I bought with 3% of my portfolio HYT yesterday. That was Friday for all of you EST folks, in bed by this time. I like it. If I don't too bad, I'm living with it. I think I'll trade some Yuan without the Y after the blokes get done arm wrestling in Feb I think it will have a great year. And I am planning on my 9 day trade with FSC post EX date coming up in about a week. If the boys and girls(mostly boys) bury me, I'll keep them for trading shares and do the same the following month. I love the idea, as I find it the cream of the crop for BDC's...now wait....
Did you see the recent article touting the 5 BDC's you have to own, for safety(AKA Condom BDC's), you can trade them with the lights off and still be safe? The only ones I like are GBDC and TCPC. I like GBDC because it has a cool name...Golub Capital. Its like we used to do before the days of Brylcreem, a hair gel:
Bryl-creem, a little dab'll do ya,
Use more, only if you dare,
But watch out,
The gals will all pursue ya,—
They'll love to put their fingers through your hair.
So naturally as stupid teenagers we bought it because if that was going to do ya, it would be a cheap date....
Anyway, before Brylcreem, we used stuff like Vaseline where you took a dollop on your fingers and rubbed it in(to your hair...on your head...never mind). If the girls rubbed their fingers through your hair after that they could grease their cookie sheets afterwards. I said all of that because the Golup brother's(Israel) name reminded me of Brylcreem for some strange reason. I figure it won't probably get the girls but it looks like it might make you some money .....
I read through their last annual report and to me it looks pretty straight forward. Newer BDC(April 2010), pays 0.32/Q for a current 7.8% yield. I know there are higher yielding BDC;'s out there like FSC @ 10.6% which I am planning on accumulating and trading.
I also like TCPC. It is real new(April 4, 2012), raised divi, now to .40 Q'ly for a 10.89% yield. Take a look at it.
Going back to mReits, I like long shares of ARR and the run to EX 10 days out on NYMT. Back test it. I've gone back to the dark days of 2008 when the stock hit below 2.00 and you still made up to 1.00 on a 10 day move. There were I believe 2 Q's where you had to give up a few cents, but that was it.
So what socks/bonds are you holding, and/or which do you plan on trading in 2013? The year starts in earnest after the slow handshake over the DC(Debt Ceiling). I have a good feeling about 2013, kind of like when the music started playing for the Brylcreem ad...;-)
Good Morning Doc and board, Just a minute to thank you and all the contributors to the msg bd. i appreciate all the imput. I am negative the macro in the short term, so I am all in cash except for SPY 148 April puts. Once the debt ceiling question is finished, I will be trading the MBS Reits and what ever looks opportunistic. Best of luck to all.
I don't know how I wound up with a double post sorry about that. Anyway, I always post my trades both good and bad so I can learn. I just bought SPY 148 puts on Friday for $5.63, sold them today for $6.03 +6.9% in one day. Last Thursday I bought and sold the same puts within 4 hrs for a 4% gain. I am not trying to day trade, but hard to walk away from these quick profits. I am trying to buy SPY April 148 puts again, for the debt ceiling debate.
I don't see the decision you made on HYT. Yahoo stats says it pays 15%, but when I calculate, it's about 8.3%. HYT paid an extra divy in December, and I think Yahoo did not handle that correctly when it computed the annualized return. It's now trading at about a 5% premium, and it's a bond fund.
I have full positions in FSC and BKCC already, and a major position in PSEC all of which I started building a while back. Waiting to see what happens now. Everything nicely green at this time.
Trivia: Golub Capital was founded by Karen Finerman's husband. She was/is a "fast trader" on CNBC. She disclosed that a while back for full disclosure.
I know Yahoo is messed up about the yield. You are correct in that it is trading currently @ 8.3% forward yield. If you are talking about its premium to NAV you are incorrect. AS NAV is 12.75 and PPS is 12.71, which places its purchase as a discount to NAV. If you are referring to a premium of 5% to something else, then please explain.
I agree that there are probably safer places to make 8% presently, like AMTG-PA, CYS-PA, MITT-PB, ARR-PA and AGNCP.
Hey Doc. I remember Brylcreem! That's too bad :)
I'm thinking of trying some VOC options soon.. I don't know why it's down so much, but maybe has room to run? x is around the end of Jan.
What do you think of that idea?
I've been doing similar to you, with some safe(r) investments, and lots of cash right now, but I think there is a while to make some money before the next crisis, no?
As always, thanks for your generous advise and counseling.
I read through their earnings summary and the company seems OK, to the read, but what is happening behind the scene? Their PPS performance and dividend trail leave much to be desired. 33% reduction in PPS and almost 50% in distribution payout in less than two years. Even worse than NLY...;-)
I try to avoid stocks with histories like that. I wish you well in your decision, whatever you decide.