Reader Mike W sent us a note today because we had not added the newer Prospect Capital 6.875% baby bonds (NYSE:PBC) to the various lists–we have now added it.
Given that we have been trimming a bit in the perpetual preferreds we bought in December (and earlier) we were in the mood for a purchase and thus looked this issue over and determined for a investment grade issue, with a maturity in 2029 the $24.70 purchase price was pretty darned good. We bought a full position in personal portfolios.
Additionally there was enough cash in the Medium Duration Income Portfolio to also pick up 200 shares in that model. That is the first purchase in that seldom traded model in 6 months.
We are aware that over the years Prospect Capital has been criticized for poor management so prior to purchase we checked Scott Kennedy on Seeking Alpha (one of the few writers we have a good level or respect for) and he had a recent article on PSEC. The article is worth a read if interested in BDC Prospect Capital (or their baby bonds).