at an interest rate of 7.75% https://www.gladstonecapital.com/ne...capital-corporation-prices-public-offering-of
No, I am not. I own some of their common shares, and I have a general interest in baby bonds. I think a lot of people don't even know these things exist, and some of them are a great way to diversify in fixed income. I don't have an opinion about this particular note. I want to see if it gets rated.
Welp GLAD the stock YTD is looking good, since IPO 20+ years ago not. Though no idea what that would mean for it's bonds.
The graph comparing the two really shows the multiple expansion of big tech that the SPX index benefitted from that Gladstone did not.
fixed income vs equity, risk is different. but generally you loan them money at 7.75, they in turn loan you money to other borrowers for more than 7.75, collateral and credit varies.
and don’t look at the yield, watch the principal. i read the Apple bond, 2.x% coupon, 30% principal appreciation as it trades at nearly 70% discount, if you can hold 8-10 years to maturity. @ETJ
%% AT first glance ; GLADstone + GLAD website looks pretty good. Sorry I dont have time to really research them @ this time; back to ETFs + Money Market. 7.77 or 7.75% is better than MM, more risk; not much risk to my local banks interest except inflation risk + opportunity risk- I care about that last opportunity risk a lot- the pain of severe underperforming the SPY benchmark. EVEN what they call a large sample of ''junk bonds'' is a lot like ''junk silver''; the junk dealers know better / call it treasure than than trash. Sure can be risk on a single coin or issue.