This article is part of a series discussing how to build a retirement portfolio using business development companies (“BDCs”) currently yielding over 12% and their safer notes – baby bonds/preferred shares with yield-to-maturities ranging from 6.5% to 10.0%.
The previous article discussed Fidus Investment (FDUS) that I recently purchased at $9.30 (40% discount to book value) for the reasons discussed in:
FDUS already is up 13% since my purchase as I timed the entry using a relative strength index of (“RSI”) of close to 30 before making purchases which also is discussed in the article.
BDC Buzz Buys More ARCC
I currently have 16 BDC positions including Ares Capital (ARCC) which I continue to purchase additional shares of as I believe that this is one of the “higher quality” BDCs. I recently purchased additional shares of ARCC for many reasons discussed in this article as well as its RSI