Fickle Sentiment, High Yields: Why We Are Buying The BDC Panic

Rida MorwaInvesting Group LeaderFollow5ShareSavePlay(10min)Comment(1)SummaryFirst, it was "First Brands" risk; now it's "AI software" risk. Market narratives shift monthly, but the cash keeps flowing.Ares Capital quality: Non-accruals remain low at 1.2% of fair value, and the stock is trading below its $19.94 NAV – a level where we are enthusiastic buyers.Blue Owl sold a loan slice to private institutions at 99.7% of par, proving the public market's discount is completely unjustified.Private vs. Public: Institutions are pricing these loans at 100 cents on the dollar; you can buy them in the stock market today for 85–95 cents.Looking for more investing ideas like this one? Get them exclusively at High Dividend Opportunities. Learn More » Sohel_Parvez_Haque/iStock via Getty Images Co-authored with Beyond Saving Investor sentiment is fickle. There will be a news story that everyone is talking about as something so important to the markets. Then, a few months later, it just disappears. DoesThis article was written byRida Morwa125.48K FollowersFollowRida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone. Learn More.Analyst’s Disclosure: I/we have a beneficial long position in the shares of OBDC, ARCC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.