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BX is really a behemoth

By: StudioCity'98



...Private Equity firm that has spun part of itself off into public hands. Similar to a Carlye (CG), Apollo (APO), KKR (KKR), or Icahn Enterprises (IPE).  Founders get a giant Liquidity Events by selling part of themselves away.

Their Mortgage group (BXMT) [i own this] is the one who did the mass default purchases after '08. Now they're considered a "mREIT" Mortgage REIT = Highly sensitive to Fed Funds Rates, nice cash flow.

BDC's are a specific type of company structure. W/o a giant legal description, they mostly behave similarly to publically traded Private Equity, each tied to some sector or industry. Some Tech, some O&G, some non-bank financial...etc. Nice thing about them is they have a low beta to the market so holding them is relatively easy. And they tend to spin off nice Dividend Yield, between 8%-!3%.

You probably know that DivYield is not stable or contractually guaranteed like a Bond, it rises or falls with price. There are easy ways to trade and/or value BDC's, such as measure them against something like the BBB Yield. This fairly easy to do, just create a basket of BDC's and its cumulative DivYield against the BBB Yield in Excel to create two graphs. As those lines oscillate against one another you visually see if the basket is under/overvalued relative to a market-driven yield.

Some would consider them quite risky, but they're really not. They're actually kinda 'Widows and Orphan's' type of holdings in that they're fairly stable to the market but at the same time spin-off high cash each month/quarter.  You may or may not have further interest in this.  If so, just shout out.

[not advise]

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