Picked Up a Little of This BDC Baby Bond

Today I went ahead and initiated a new position in a business development company (BDC) baby bond.

I bought the Trinity Capital 7.875% (TRINZ) issue at $25.29. I currently hold the 7% baby bonds from Trinity (TRINL), but this issue matures in January and this could be considered a replacement. The TRINL issue already experienced a call for 25% of my shares (bonds)

Of course I could have bought the TRINI issue which carries the same 7.875% coupon but I saved a couple pennies with the TRINZ–does it really matter–not really.

I did review the company financials from August and didn’t find any glaring issues–in particular payment in kind holdings (PIK). Of course it is a BDC so there will always be issues of one kind or another–but I didn’t notice anything of unusual concern.

I continue to shop–although once again I don’t feel pressure in particular in light of the 10 year treasury yield backing up–now stuck at 4.03%. The CPI on Thursday could push the rate higher or lower (of course) and then I will see if I want to add more shares of a preferred.