Gladstone Investment: Hunting High Yields From The Baby Bonds
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Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryGladstone Investment offers diversified exposure with $1.14 billion in assets and a stable common stock trading at a 3.3% premium.GAINZ baby bond stands out, yielding over 7.2% to worst, trading below par, and maturing in 2.8 years.Indicative credit analysis suggests GAIN's debt aligns with a moderate Baa1 quality, balancing attractive yield and manageable risk.GAINZ's combination of high yield, short duration, and moderate risk makes it compelling for yield-focused BDC bond investors.Looking for more investing ideas like this one? Get them exclusively at Trade With Beta. Learn More » Edwin Tan/E+ via Getty Images Today we are out hunting for yields again, and today's victim is Gladstone Investment (GAIN) with its baby bonds - one of them giving us more than 7% yield to maturity. GAIN Basic InformationThis article was written byArbitrage Trader15.51K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. 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.