| You’re simply wrong, these positions are not distressed. PDO is a bond fund, not a company. They earn interest on bonds they hold. All bonds have lost value as risk free rate has risen. The interest payments on those bonds has remained the same, and they don’t hold non-performing loans.
There is no distress in the portfolio. If rates drop again in the future, the capital losses revert back to capital gains. If you think the Fed will hike substantially more from here, then these arent the place to be. I for one think they dont have much further to go These are managed by PIMCO which is a famous fixed income firm, not some nobody. You can look at PTY for a longer track record public fund. Which performed very well through the GFC by the way AFCG has 0 debt and real estate secured loans. Not distressed, even if they experience defaults in a severe recession. Lenders go bust when they are overindebted and cant service debt due to defaults. Lenders without debt don’t PBR has a PE of less than 2 and is not distressed at all. Its price is down due to political fears that the new government will mismanage the company. Fears which are likely to be overblown. ARCC and CSWC are two other high yield lenders that are doing better than ever. CSWC sports close to a 15% yield including specials, and they’ve raised the dividend consistently every year. ABR pays 13% and raises the dividend double digits every year. Multifamily secured loans. Has performed better than most hype growth tech stocks while paying double digits There are plenty of deep value and high yield plays out there. Too bad that most don’t care to look for them |
You really don’t know what you’re talking about and are underplaying material risks like the govt. withholding most or all profits of the nationalized oil firm.
And like I said, the other stocks you had mentioned didn’t exist 3 years ago - that’s not a track record to judge by - issuing leveraged loans in free money environment which is no more.