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UBS ETRACS 2xLvg Lng WF Busn Dev Co ETN Message Board

  • ahkydildock ahkydildock Apr 4, 2014 10:11 PM Flag

    Sold My PSEC ... Bought more BDCL

    PSEC and I had a long relationship.
    It was my first ..... ....... ....... BDC stock, so I had some sentimental attachment; I mean, hey, it was my first.
    I got over the withdrawal symptoms from no more monthly divies pretty easy.
    Heres my thinking ...
    -BDCL div is bigger .... (so the list should end there, right?)
    -BDCL's collection of underlying companies should smooth out the bumps in the road.
    -I have been uneasy for some time regarding PSEC's constant issuing of stock. Yes I know they are using the ATM method now, but the float keeps getting larger and larger regardless. So, I'm a nervous Nellie, but I just can't wrap my head around a constantly expanding universe.
    Anyway, that was How I solved that large philosophical problem.
    Oh, and yeah ... bought some more MORL as well.

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    • I have more BDCL than other bdc's but am wondering what will happen to bdcl if they take all of the bdc's out of the Russell index like they did the s&p 400 it may only be temporary 2-3 months, but may present a better buying opportunity down the road and am considering selling my stock just prior to exdiv date.

      • 1 Reply to davemaine
      • Well, Dave ... that's an interesting approach.
        Russell hasn't done it yet ... "Russell revealed that it will remove BDCs from its indices during a planned June reconstitution if the Securities and Exchange Commission does not change the group’s fee-reporting standard by May 15," so we probably haven't seen any impact yet.

        There's potential for a sizeable (tho temporary) downside impact, "Some BDCs’ ownership in Russell index-related funds see as much as 38 days’ worth of average trading volume."

        Ex is Wednesday, so we have likely seen all the prior run up for the price.
        We'll know in about 5 weeks if this will happen, at which point, you start to see a benefit.
        Meanwhile, you likely have minimal risk of the price running away from you.

        Hmmmm .... interesting

        Anyone else want to expound on this strategy?


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