Tuesday, June 30, 2015

BDC Buzz Update: June 30, 2015

Included in this update: 

  • S&P 500 Volatility Index (VIX)
  • BDC Market Dips
  • Changes in BDC Yields & NAV Multiples

This is a quick update for newsletter subscribers as market volatility has created another potential buying opportunity for BDC investors. If you are interested in receiving updates on my purchases or dividend sustainability, risk assessment and rankings, target prices, earnings projections and portfolio recommendations please visit premium reports.  Please make sure that you have adjusted your ‘subscriber preferences’ to receive updates on specific BDCs.

S&P 500 Volatility Index (VIX)

As mentioned in previous newsletters, investors should take advantage of general market weakness to purchase BDCs especially higher quality companies that usually trade at a premium with lower than average yields. One of the general market indicators that I watch is the S&P 500 Volatility Index (VIX) that is already close to 20 which is when I prefer to make BDC purchases.

Buy on the Dips

As you can see in the following chart, BDCs have had three major dips over the last 12 months and they coincide with the VIX above 22.

Changes in BDC Yields & NAV Multiples

The good news is that investors are able to get higher yields as shown in the following table.

Please visit ‘Premium Reports’ if you are interested in more information about BDCs including:
  • Pricing and Valuation
  • Suggest BDC Portfolios
  • My Current Positions
  • Individual BDC Projections
  • Dividend Coverage Potential
  • Rankings (risk, return, pricing, dividend potential)