BDC GOOGLE SHEETS
There are currently 25 BDCs included:
AINV, ARCC, BXSL, CGBD, CSWC, FCRD, FDUS, FSK, GAIN, GBDC, GLAD, GSBD, HTGC, MAIN, MRCC, NEWT, NMFC, OCSL, ORCC, PFLT, PNNT, PSEC, TCPC, TPVG, and TSLX
Also included are the Investment Grade (“IG”) Notes, Preferred Stocks, and Baby Bonds for:
AINV, ARCC, BXSL, FCRD, FDUS, FSK, GAIN, GBDC, GECC, HTGC, MAIN, NEWT, NMFC, OCSL, ORCC, OXSQ, PFX, PNNT, PSEC, SAR, TCPC, TSLX
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- There are various worksheets as shown below including Suggested BDC Portfolios,
BDC Ranking Tiers and Baby Bonds. BDC pricing can be volatile and Google Sheets
tracks real-time changes to pricing compared to my price targets so that investors can
make quick decisions.
- Recommendation Categories: After investors have identified BDCs that fit their risk profile,
I categorize investors’ needs for each BDC holding using the following:
- Investors looking to start a position. Dipping your toe in.
- Investors looking to grow a position to a full/appropriate allocation.
- Investors looking to opportunistically add to a position beyond a full/appropriate allocation.
- Mostly for dividend income.
- Dividend income + 5% capital gains within 12 months.
- Dividend income + 10% capital gains within 12 months.
- This is for investors that do not currently have a meaningful position in a certain BDC and would like to “dip their toe in” with a starter position and then continue to buy more on the dips. I suggest buying a small number of shares closer to its short-term target price.
- This is for investors that already have smaller positions and would like to grow them to a full/proper allocation for a diversified portfolio. I suggest adding to these positions at prices closer to 5% below its short-term target price potentially after equity offerings as discussed in previous articles.
- This is for investors that already have full positions and would likely only add at opportunistic prices of around 10% below target prices potentially during general market volatility and pullbacks. Active traders might choose to sell these shares for capital gains at a later date to re-balance the portfolio.
Relative Strength Index (RSI):
“The relative strength index (RSI) is a momentum indicator developed by noted technical analyst Welles Wilder, that compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security. It is primarily used to attempt to identify overbought or oversold conditions in the trading of an asset. Traditional interpretation and usage of the RSI is that RSI values of 70 or above indicate that a security is becoming overbought or overvalued, and therefore may be primed for a trend reversal or corrective pullback in price. On the other side of RSI values, an RSI reading of 30 or below is commonly interpreted as indicating an oversold or undervalued condition that may signal a trend change or corrective price reversal to the upside.”
This is a complicated formula because it takes into account changes in daily pricing over a rolling 365 days which takes time to process (as the price changes). I have not found this indicator available in table format with other online services.
I have color coded the RSI values with green showing closer to 30 (indicating oversold), yellow showing near 50 and red showing closer to 70 (indicating overbought). I include a chart with stock pricing and RSI in my “Deep Dive” reports for each BDC showing that I have made many purchases when its RSI is closer to 30.
I have found a way to measure the average volume being traded for all BDCs to see if it is an active or slow trading day for the sector and then look at individual BDCs to see if they are trading above or below that average (given the time of day).
This is important because investors should know when volumes might be indicating something meaningful is going on with the stock, whether positive or negative.
“Baby Bond” Sheet:
- Investors should use limit orders when purchasing exchange-traded debt such as Baby
- BDC Baby Bonds trade “dirty” which means that there is a certain amount of accrued
interest in the market price. I have included the amount of accrued interest that updates
- You need to own the Baby Bond one trading day before the ex-dividend date to be
eligible for the full quarter of interest.
- It is important to take into account which BDCs are “callable” and the potential for
capital losses during the worst case scenario.
- The Call Risk Capital Loss column refers to the worst case scenario of a bond being
called tomorrow (if currently callable) and takes into account 30 days of additional
interest accrued before being redeemed. See below.
- Breakeven Days refers to the number of days of interest needed to break-even given
the current market price. See below.