There is a particular magic trick in finance that hides in plain sight. It involves no sleight of hand, no back room dealings, and no regulatory violations. It sits right there in the quarterly earnings reports of Business Development Companies, printed in clean black ink, fully disclosed. And yet most investors walk right past it […]
PIK Income: The Hidden Accounting Trap in Your Favorite BDC Read More »
There’s something wonderfully absurd about a law that forces companies to hand over their profits. It’s like mandating generosity, which sounds about as effective as legislating happiness or requiring spontaneity. Yet this is precisely what happens with Business Development Companies, and the mechanism behind it reveals something fascinating about how we’ve tried to engineer prosperity
The 90% Rule: Why BDCs are Legally Obligated to Make You Rich Read More »
Every investor has heard the gospel of long-term thinking when it comes to asset allocation. Buy and hold. Stay the course. Time in the market beats timing the market. These mantras get repeated so often they’ve become financial scripture. But here’s the uncomfortable truth: while you’re busy being patient and strategic, your portfolio might be
Why Your “Long-Term” Asset Allocation is Failing Your Monthly Returns Read More »