We have added a new issue to the Medium Duration Income Portfolio.
We added a full position of Saratoga Investment (NYSE:SAR) 6.75% notes due 2023. Of course building a portfolio at this time one ends up having to pay over $25 for the shares, but given the parameters of this portfolio we are better off making timely investments instead of waiting for a better price, which may or may not ever come.
These notes (NYSE:SAB) have a early call date of 12/21/2019 with maturity on 12/30/2023
We chose this note because a quick review of SAR shows that the majority of the loans they make are senior liens and have floating rate interest rates (84% are floating rate) attached to them. The company has had fairly good financials in the last year or two.
With this purchase we are just over 50% invested, but with the soon to trade Sotherly Hotels baby bond (at least we hope it trades soon) we will be 60% invested in this model.