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Post by ECE Prof on Nov 15, 2022 0:51:09 GMT
Eagle Point Credit Company Inc. Declares $0.50 Per Common Share Special Distribution. A lot of money. Collect more cash than VMFXX or SPAXX.
I was wondering about the price jump today, and checked the reason. The reason: This is the second time in two months, I wiped out all the price loss, and also gained some today. That means that all the distributions at 15%+ is my gain, as of today. I do not care about the gain, but, to put it in “FD's terms,” my risk-adjusted return is big. The same concept also applies to PDI.
In fact, as I have been saying all along, interest rate hike helps the income-type (bond-type) CEFs because interest hike is a knife with two sharp edges. So, “the back of the envelope guys in SA” and their followers lose by selling. In fact, it is very interesting to note that XPDIX has started going up recently because PIMCO may have adjusted its portfolio to get more juice. If the price falls below $19/sh again, I may buy a few more a thousand shares of PDI. I have a lot of dry powder. I do not have to wait for market to return to have a price gain of 13+% with this kind of inflation. In short, PIMCO and loan guys deliver. Also look at BDCs. Good ones are at a big premium, 40% now. I regret selling those to buy equities and lose recently.
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Post by Fearchar on Nov 15, 2022 1:44:05 GMT
xPDIx went up today; but that's a far cry for the start of a trend...  |
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Post by ECE Prof on Nov 15, 2022 2:12:39 GMT
xPDIx went up today; but that's a far cry for the start of a trend... View AttachmentYes, you are right. Two days of increase does not mean much. I was trying to make a point here. In fact, I want the price to go down so that I can buy more shares. The average price of my current holdings in PDI is above $22/sh. But, this average came down from the price of more than $24/sh because I bought more shares whenever the price fell below $19/sh. |
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Post by ECE Prof on Nov 15, 2022 17:08:55 GMT
Lot of loan guys are increasing the distributions. I came to know that one of my long term favorite holdings (not anymore), GLAD, has increased its distribution from $0.06/sh to $0.07/sh (16% jump). The price has jumped by more than 5% today. The prices of many of my favorite BDCs are going up and up. They are not cheap anymore. It seems that many buyers expect their NAVs to go up with the increased revenue, and the premiums to go down in the future. It is all about making dollars and cents. There is a big trend here.
God bless the FED. I am minting money. |
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Post by ECE Prof on Nov 16, 2022 16:56:28 GMT
ECC has reported the earnings yesterday for the past quarter. ECC has earned a lot more than $2.66/sh for the full year, while the normal distribution is only $1.68. Obviously, it can distribute almost $1 more, and it has distributed less than $0.47 in excess. So, its earnings should boost the stock price, but I will not buy at the price. Zack Research gives “3” and “hold.” If the price falls below $11 as it has happened before, I could buy more shares. I usually buy when the trend is bearish, not bullish.
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Post by Deleted on Nov 17, 2022 4:10:04 GMT
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Post by ECE Prof on Nov 17, 2022 5:08:59 GMT
Thanks, Frank. In my phone, I couldn't pass some registration process because my old login to SA was lost due to the fact that someone stole my phone number. I will only buy if its price falls below 10.75/sh. Even if there is CG in any income type CEF, I don't sell because it is hard to buy the shares cheap again. In this process, I believe that there is a loss of income. Why the hassle?
Add/Edit (11/17/2022):
There was an important point in the link that I was able to read, bypassing the paywall today. You have a real loss only if you sell but, if you keep it to maturity, you do not have a real loss but only a paper loss. In spite of the paper loss, ECC is minting money. So, only for those traders (I can cite some names here, but I will stay out of it), the starting and ending prices on specific duration(s) matter. For people like me, it does not matter and do not care. The same concept also applies to PDI. It is very interesting, PDI's NAV keeps going up and up in the recent days, and its price is dropping. I am not passing any judgement, just my observation.
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