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