BDC Fidus Investment sold a baby bond last week and the issue has commenced trading today and is trading a tiny bit higher than we thought it would trade given the recent interest rate moves.
Shares are trading in the $24.85 to $25.10 range–about a quarter above where we were thinking it would trade. The coupon is just 5.875%, but the short maturity in 2023 is likely lending support to the price.
With a fall in price that would raise the current yield we would have interest in the 6.25% area.
Any thoughts on RMPL/P. Same yield but term ending 2024
Hi Rick–we wrote a bit on this one back on 1/25 here
https://innovativeincomeinvestor.com/we-love-preferred-stocks-of-closed-end-funds-cefs/
We are biased on this one–but we rate it B on a A-F scale for dividend safety.
We think it is ok to own (depending on your age, financials etc that we don’t know) although the maturity is out in 2024 so it could take a few minor knocks even though it is a term preferred.
The chart has looked very solid through this market turmoil.
https://innovativeincomeinvestor.com/security/rivernorth-marketplace-lending-corporation-5-875-series-a-term-preferred-stock-due-2024/
Good luck.