I am not so sure. CSE tried consumer finance including auto loan financing prior to the financial collapse. Turned out they didn't know what they were doing. I take note GE is getting out of consumer finance business.... will sell and spin in 2014.
I am skeptical this translates into much of anything in terms of shareholder dividends. What kind of loans and to whom are these high interest rate car and other consumer loans made to justify obtaining a return for BDC shareholders?
I will give management a chance to explain but this may cause me to change BDC horses. I already cut my position by 40% and redeployed into better breed BDCs taking the yield hit at a time when my MLPs are doing double-digit distribution growth as offset to better balance my portfolio in favor of best of breed for retirement living.
I think your comments are full of holes. Nicholas is very profitable and will be accretive to PSEC.. The management team is stepping ahead of the curve far better than any other BDC with their investments in real estate and now this... Great move..