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re: Searching for yield

Posted on 1/23/12 at 10:51 pm to
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 1/23/12 at 10:51 pm to
quote:

Can't talk stocks


Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 1/23/12 at 10:55 pm to
I mean its not like its free money, its got significant risk.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 1/23/12 at 11:14 pm to
Not to change topic but please tell me yall have been reading @GSElevator. Best thread on the MB in about 5 months probably already imo.
Posted by RedStickBR
Member since Sep 2009
14577 posts
Posted on 1/23/12 at 11:19 pm to
That does make me LOL
Posted by I Love Bama
Alabama
Member since Nov 2007
37765 posts
Posted on 1/23/12 at 11:26 pm to
quote:

I've dealt with several funds who do this. Hedge funds will grad leverage for 450 bps and then make the spread.

That's something so tempting, it's almost too good to be true.



In Alabama they start at 12% and get bid down. When the market/economy were booming you could get 10%-11% all day long guaranteed. Insane. Last sale I was at they were between 8- 6 %.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 1/23/12 at 11:27 pm to
quote:

investing in a small business isn't exactly something I'd call focusing on preservation of capital. Unless you're talking really small sums like $5-10k


I should have been more clear, but I actually was referring to a small investment in that size range since that is appropriate to many posters here. Most who have more to swing than that aren't looking for free advice on a board, right?

Given the above, I don't see how investing in a 5 year CD given current rates can be better than investing 10-20K for a few years with the brother-in-law who has a little something going. Again, larger concerns may not have as much trouble securing regular bank loans but smaller ones that aren't very risky are begging for cash.

None of the above applies to multimillion dollar enterprises with existing bank credit facilities, of course.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 1/23/12 at 11:46 pm to
I don't see it that way but to each his own. Pretty sure OP used to work for a fund, if I recall his previous posts. Also find it odd considering the usual mantra for "should I invest in so-and-so's business?" is usually "don't go into business with your family or friends." I guess that no longer holds, but that's definitely still how I feel. eta: Regardless of the risk profile you want to assign to a small business.
This post was edited on 1/23/12 at 11:49 pm
Posted by datdude3384
Member since Sep 2007
249 posts
Posted on 1/23/12 at 11:58 pm to
1) A certain large telco in Louisiana has a 7-8% div. yield right now.

2) Be a bank and hop on some syndicate loans with fifth third at 3bps floor +LIBOR with 8bps ceiling

3) L-3 bonds, they non-inv but even Morales was chunkin powda on them

4) Work at Hilcorp and get on that dude's inside investments = guaranteed bank

5) WWAY, div. yeild 2.8% right now, company already said wouldnt sell for $6 so you could saddle on them and collect and see what happens

6) EDP, expensive but these guys are good + a 5% div. yield

7) LAZ, 2.4% div but they could have growth

Im just throwin shite off the top of my head with no reasearch, soooo hopefully one will be accurate!
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 1/24/12 at 10:26 pm to
quote:

CQP is a stock I've always been interested in, but never bought, because when it was cheap because I didn't think I fully understood the risks, and didn't buy later because I thought I had missed the boat. I would be interested to hear what someone smarter than me has to say about CQP.


Well, that was a great pick for the day......

Posted by GregYoureMyBoyBlue
Member since Apr 2011
2963 posts
Posted on 1/25/12 at 8:31 am to
Posted by GoDucks349
Westfir
Member since Jan 2011
420 posts
Posted on 1/25/12 at 8:27 pm to
Thanks I'll do some research.
Posted by GoDucks349
Westfir
Member since Jan 2011
420 posts
Posted on 1/25/12 at 8:30 pm to
RedStickBR, thanks this is helpful
Posted by GoDucks349
Westfir
Member since Jan 2011
420 posts
Posted on 1/25/12 at 8:35 pm to
Thank you, good stuff to look into
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 1/30/12 at 8:50 pm to
quote:

Again, larger concerns may not have as much trouble securing regular bank loans but smaller ones that aren't very risky are begging for cash.


FWIW:



[LINK]

So I stand by my initial point that they are not, and in fact are even more debt averse than they are traditionally, which they are.
This post was edited on 1/30/12 at 8:52 pm
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