Part 2: BDCs Paid Members Public
Summary 1. Business Development Companies (“BDCs”) offer high dividend yields as they make floating rate, high yielding loans to small and mid-sized businesses. However, dividend yield is a flawed valuation measure when looking at the sector. Net Investment Income Yield as well as factors that impact book value are more
Credit Check Paid Members Public
Credit markets have rallied aggressively so far this year, along with most risk assets, continuing the bull market that begin in late 2022. In this week’s note we provide a brief update on corporate credit and a few thoughts looking forward. First, both investment grade and high yield credit
Part 1: Midstream Energy Paid Members Public
Summary 1. Comparing equity yields in midstream energy with fixed income can be challenging given its added risk and growth components. Metrics such as dividend yield and free cash flow yield do not provide a full picture and we walk through two approaches for analyzing yield. 2. The midstream sector
Ahead of the Fed Paid Members Public
Markets are two days away from a Fed meeting, which has the potential to rattle this ‘Goldilocks’ market. Taking a step back, over the last 4-5 months, stocks have moved higher in nearly a straight shot, and bonds have been mostly range-bound. A still healthy economy, optimism around a 1990s-like
SPWH: A Post-COVID Deer in Headlights Paid Members Public
Going forward, we plan on occasional posts like this where we don't do a deep-dive, but provide high level thoughts on idiosyncratic situations we are watching. Summary 1. SPWH is facing a post-COVID hangover with weak sales trends and declining margins after opening too many stores. 2. We
A Two-Tiered Economy Part Two Paid Members Public
Summary * This week, we once again explore the bifurcation in the economy, which we believe is large and set to grow. In short, parts of the economy are clearly doing well, even thriving, despite higher rates. Other areas have been struggling, such as companies with high leverage/ little FCF, consumers
An Update After 4Q23 Gold Miner Earnings Paid Members Public
Gold Moving Sideways So far to start the year, gold has bounced around in a fairly tight range ($2000 - $2050). We are actually somewhat encouraged by the price action. First, over the same time period, 10Y real yields have risen by around 30bp. This selloff in bonds should have
Bank Stocks, Charts & Data: 4Q23 Paid Members Public
The Banking Sector In Charts We are through 4Q23 bank earnings and have a few weeks until all companies file their 10Ks. Aside from a few data points, most information compiled is available through the Call Reports available on the FDIC's website or supplemental data issued with earnings
