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re: Div play??

Posted on 6/23/16 at 7:41 am to
Posted by RJSambola
Member since Jun 2012
378 posts
Posted on 6/23/16 at 7:41 am to
It's a riskier financial stock. I would say if something similar to 2008 happens again most will shutter. Part of it is chasing yeild. Look at some of the mlps in the energy sector. When the price of oil fell it did some serious damage to most of them. Or some reits when the housing/commercial real estate market tanked. I could see the reduction of the value and profitability with the increases in interest rates. Where traditional financials will get more attractive because they gain profitability spreads, bdcs are typically squeezed.

Basically right now they are getting super cheap money to play venture capitalists with. When that money gets more expensive so do the ventures that are unprofitable.
This post was edited on 6/23/16 at 7:44 am
Posted by My2ndFavCivilNgineer
Member since Jun 2013
591 posts
Posted on 6/23/16 at 2:24 pm to
quote:

It's a riskier financial stock. I would say if something similar to 2008 happens again most will shutter. Part of it is chasing yeild. Look at some of the mlps in the energy sector. When the price of oil fell it did some serious damage to most of them. Or some reits when the housing/commercial real estate market tanked. I could see the reduction of the value and profitability with the increases in interest rates. Where traditional financials will get more attractive because they gain profitability spreads, bdcs are typically squeezed.

Basically right now they are getting super cheap money to play venture capitalists with. When that money gets more expensive so do the ventures that are unprofitable.


thanks for sharing
Posted by Hoyt
Alabama: The Beautiful
Member since Aug 2011
5640 posts
Posted on 6/23/16 at 8:07 pm to
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