Hey, I spent the afternoon doing a lot of DuckDuck scouting and found a handful of reviews and numerous YT vids re portfolio analysis and found a few re Snowball along with yours and subsequently subscribed using your link. Thx Having watched your comparison w/Simply Safe, and other reviews, it appears that Snowball will provide a substantial amount of insight - and perhaps more when I realize all I don't know but glad it's there to be found! Thanks again.
I was sitting here with my hot cup of Joffrey's cinnamon apple & carmel coffee, patiently waiting for armchair incomes Sunday video to drop so that I can watch it before heading off to church. I have been rewarded. 🙏
I guess I am not the only person sitting around drinking coffee (Kona in my case) waiting for your video to drop. I appreciate the detailed analysis and broad perspective of this BDC. Keep up the great work! Looking forward to what you will bring next.
Thanks for an interesting update on CSWC. Most helpful! I may add some CSWC to my portfolio tomorrow. So far, the only BDCs I own are ARCC, BXSL and MAIN. Good stuff!
Individual BDC's aren't for everybody, but if you enjoy reading about them, I think its worth considering investing in your favorites. Thanks for sharing those tickers....I hold them too!
Another very informative video evaluation. Thank you. Past CSWC holder. Had a great experience with it. Would still hold, but content with the allocation provided through PBDC in efforts to trim down total holdings and simplify my life.
Thanks for the analysis! I own CSWC and have been adding at these low prices. Also have several other BDCs, including PBDC. This is my favorite channel!
I don't allocate more than 5% to any one company, but I did increase my CSWC a little bit. If it goes up to 1.5x NAV again I'll probably trim a little, but overall its a long term hold for me as long as they continue to deliver great performance.
I wish you a happy, healthy and prosperous New Year filled with adventures and discoveries! Thank you for another year packed with valuable content. I sold half of my CSWC when it shot up to the moon(I also bought it in March 2023 🙂) and added to HTGC which had seriously dropped. If CSWC drops below $20 I will add more.
Thanks for sharing! I followed similar patterns to you. I never want to own zero shares of these companies but when the valuations get crazy high I don't mind skimming some cream off the top. Best wishes for a happy and healthy 2025 :)
I appreciate the statistics and sources used in this video. I had just bought some MAIN last week, I see I may be buying at some overvalued prices haha. If anything ARCC is looking more fairly valued based on the Price/NAV.
Hi COTY....I always regret selling MAIN for a profit. A good strategy would have been to buy MAIN at random times, or even at the worst times...it just keeps on delivering incredible results.
I took full advantage of the drop and increased my positions considerably. Will be happy to add again if it gets below $20 (my cb is now $19.50). It's important to listen to earnings calls. Happy we're on the same page for this one.
Yes! Thanks for watching and commenting so many times. Best wishes for a happy and healthy 2025! and hopefully the market will continue to be kind to us :)
@ I’m 37, I’ve been retired since 30. Some hard decisions to make. I want to leave 10% of my capital in spy in order to capture yield over the next 30 years, but I ma going to learn everything about income investments first before I make any moves. Crated a dummy portfolio on snowball, and watching it now. Thanks for your letter.
I also had a large position in CSWC with a cost basis at about $17 a share, but got concerned when the fed started cutting rates(at that time i thought they were headed to about 3%) and the 65%+ premium really caused heart burn in me, so I liquidated all of it. Now the premium is in the high 20's and I might reconsider buying.Thanks for the video.
Great video. I have some CSWC and I'm happy to add more. I'm strictly income investing so price return and total return is not something I worry as much about. HRZN is another one I really like but it's drop has been much more dramatic and I'm still trying to figure out why.
I just upped my CSWC position from 2240 shares to 2300. I am actually down overall by like %9 on them after their recent plunge. They still pay well and I feel they will recover or at least continue paying well which is my primary concern.
Very convincing and balanced. As a former federal bank examiner, auditor, and CPA, I am in. It’s an opportunity. I like Seeking Alpha too. I will buy more when the recession hits, I just don’t know when. I will buy sea scallops all day when it is on sale at the price of cod. Thanks.
I have some CSWC, plus I have PBDC. Even though CSWC has a higher yield, for the future I think I'd still lean more towards PBDC for the diversification it offers.
Yes, PBDC adds far more diversification. I like to augment it with a sprinkling of some of my favorite BDC's but I like the research. For most people, following a lot of BDC's is too much of a time suck.
Excellent update, thanks. I started a small position in CSWC last week and also have PBDC. Any chance of a similar update on ASGI? Love the dry humour at 4:30 😂
I'm not familiar with FFRHX. Generally, floating rate loan funds are still delivering decent income, for as long as rates remain relatively high. 2019 to 2021 the distributions dropped by 50% so timing matters.
Lol... "restructuring" includes bankruptcy. I suspect the low end retailer was Big Lots which was sold through bankruptcy this week. It wasn't liquidated, but would assume most debtors didn't get back what was owed due to others ahead in line. That said, hopefully they took the bad news last earnings, so the impact is now off the books.
Yes, that's a good point. The recovery can be anything from 0 to 100%, but almost always less than 100%. My point was just that "Non-accrual" doesn't equate to total loss. As for the order of debtors, most of CSWC's loans are first lien, which is higher than average.
@@armchairincomechannel I'm to lazy to read Big Lots bankruptcy filings. But the order of debt repayments if memory serves correct are lawyers filing the bankruptcy, employee salaries and benefits, government taxes owed (which often ends up with zero for every else), any assets or inventory that were purchased with a pledge/terms, then secured bondholders, unsecured bondholders, preferred stock, and common stock.
Great video and thanks for sharing your knowledge. Learn something new every week. Do you think that newsletter is helping and making you money. I have no problem paying for stuff like that
Thanks for your feedback. It costs me money (for the hosting service) to produce the free newsletter so it loses money. One day I might make a paid service, but first I'd want to figure out how to make it even better! I'll look into it this year.
As usual great video explaining the workings of CSWC, thanks a lot... I had a question about your 5% allocation limit,does this apply to all your investments or just to individual fund/companies? Specifically, if you invest in something like PBDC or BIZD which are already diversified on account of their diverse holdings , do you still hold fast to the 5% rule? Thanks for your insights...
Thanks for your feedback. I'm a little loose with the rule if there's some crossover with a fund that holds the stock. The overriding concept is not to be too dependent on the future of any one company. If it creeps up to 6 or 7 percent for the reason you outlined I'll look past it as long as it's a favorite. Also, I think the 5% cap is more important for individual companies than diversified funds. SPYI is less risky than an individual company for example.
Thank you for a great video. Do you factor in the dividend growth CAGR when making buy decisions or is it just current yield and an ability to sustain the dividend? Kind regards.
A history of dividend growth is a huge plus, so yes, all other things being equal I'd favor that over an alternative that didn't have a history of growth. Predicting future growth is impossible but a history of dividend growth is the next best thing.
Right...according to their respective website, here's the CSWC % of each of my fav BDC ETFs: PBDC (3.18%), LBO (1.96%), BIZD (1.81%) Maybe they "knew" beforehand and ditched some of the CSWC shares to maybe add them back later at cheaper?
It's 3% of the PBDC fund so it's not in the top 10. You could argue that its still too expensive. BIZD is an index fund so its based on a formula, not what's "good" or "bad".
Excellent video as always. Not a CSWC question, but at your latest Armchair Insider email update, I saw you mention JAAA highly and purchase JBBB because it met your 8% criteria. Is 8% a strict cutoff or do you ever consider matching a higher yielding stock with a below 8% stock to give you a mixed yield greater than 8%? For example, I bought JAAA at 6.4% yield and EIC (BB rated CLO tranches)at 15.5% yield in a ratio 64/36 ratio that provides 9.69 yield and probably close to a mixed JBBB rated portfolio.
Great question, the answer is that 8% isn't strict. I'm looking to create a portfolio that exceeds 8% and that can include investments that pay less than 8% if they offer something of value such as: 1/ Dividend Growth or 2/ Low volatility.
hi there, thanks for the video again. I used your link to sign up to Seeking Alpha, am I right that Steven Fiorillo is one of your favorite analysts? I thought I heard you mention that on one of your videos but cannot find it anymore, thanks W
Thanks for using my link. Yes, I Fiorillo is one of my favorites. I mentioned him a couple of times but can't remember which videos either. I also like Nick Ackerman, and the Gaming Dividend, and the Stanford Chemist, and The REIT forum, and ADS Analytics!
I'm not familiar with BINC. It uses a variety of fixed income asset classes to deliver low price volatility and more income than short term treasuries alone. The distributions are more volatile than what I'm looking for.
Hey. Great channel. So helpful!! Questions about SA if I can ask.. 1. You mentioned some SA authors you like. Any thoughts on Rida Morwa in addition to the ones you've mentioned?? Maybe not conservative enough for your income investing style?? 2. Is there a place in SA where I can simply see Earnings available for Distribution (EAD) for a given company of the 'pass through' variety as a more useful metric for such companies like NLY or ARCC than P/E?? it seems oddly hard to find metrics like EAD or Cash Available for Distribution (CAD) without looking up multiple quarterly earnings reports....
Thanks for your feedback. 1/ You're spot on about Rida. I like some of his articles but generally I'm more conservative than him so I read cautiously. 2/ Those metrics would be useful but I haven't found a database on SA or anywhere that extracts them. My guess is that its not easy for the software to pull that data in a way that's specific to the asset type.
Lost money on this one and fear a major recession this year due to Trump chaos so sold all my positions. BDCs are going to be vulnerable to any economic downturn.
You SOLD all?!?! 😳 Poor guy. The dividend income is the primary attraction AND income is what helps most in a recession…wow… Besides, why sell at a loss when income adds to the gains and this is an income stock? 😬
117 stock market all time highs under Trump, obviously before Covid. Not being in and getting smoked is definitely a possibility. No one can predict the future should be the first thing you learn when investing of any kind (don't try to time the market). All that said, I definitely have moments where I want to sell everything 😅
One argument says that the new administration will bring inflation and chaos, the other argument is that it will bring deregulation and lower taxes. I don't know which one is true. However, I do know that my single greatest investment mistake was to go to cash during the pandemic out of fear. That cost me a fortune. You have to sleep well at night so hold whatever achieves that goal.
I've looked into this BDC briefly and my initial impressions are good. It's so new that I'd like to see more data/history before seriously considering an investment in it.
➡Snowball Dividend Tracker
(Create a Free Account, and the 10% Discount will appear under "Subscribe"):
armchairincome.link/snow
Hey, I spent the afternoon doing a lot of DuckDuck scouting and found a handful of reviews and numerous YT vids re portfolio analysis and found a few re Snowball along with yours and subsequently subscribed using your link. Thx Having watched your comparison w/Simply Safe, and other reviews, it appears that Snowball will provide a substantial amount of insight - and perhaps more when I realize all I don't know but glad it's there to be found! Thanks again.
I was sitting here with my hot cup of Joffrey's cinnamon apple & carmel coffee, patiently waiting for armchair incomes Sunday video to drop so that I can watch it before heading off to church. I have been rewarded. 🙏
Thanks for painting that picture :) I'm answering comments with a hot latte!
I switched to just holding PBDC and PFFA.
If you don't want to spend a lot of time analyzing this stuff...that's a good idea!
I guess I am not the only person sitting around drinking coffee (Kona in my case) waiting for your video to drop. I appreciate the detailed analysis and broad perspective of this BDC. Keep up the great work! Looking forward to what you will bring next.
Thanks for your feedback. I'm more of a latte fan. Happy Sunday!
@@armchairincomechannel ever since i saw your first videos on my recommended page. i started to shift my portfolio significantly.
Thanks for an interesting update on CSWC. Most helpful! I may add some CSWC to my portfolio tomorrow. So far, the only BDCs I own are ARCC, BXSL and MAIN. Good stuff!
Individual BDC's aren't for everybody, but if you enjoy reading about them, I think its worth considering investing in your favorites. Thanks for sharing those tickers....I hold them too!
Another very informative video evaluation. Thank you. Past CSWC holder. Had a great experience with it. Would still hold, but content with the allocation provided through PBDC in efforts to trim down total holdings and simplify my life.
Makes sense. Following multiple BDCs takes a lot of time.
Thanks for the analysis! I own CSWC and have been adding at these low prices. Also have several other BDCs, including PBDC. This is my favorite channel!
Thanks for sharing that! I appreciate your encouragement...more Armchair Income...coming soon :)
thanks for another timely video. I already have this one on my watchlist for my pending future retirement in 2 years or more.
Glad it was helpful!
Perfect timing. I just started picking up some more. It is one of my portfolio's cornerstones.
I will hold back a little.
I don't allocate more than 5% to any one company, but I did increase my CSWC a little bit. If it goes up to 1.5x NAV again I'll probably trim a little, but overall its a long term hold for me as long as they continue to deliver great performance.
Thanks for this; it's very timely. I just bought a few more shares on Friday, so with what you've said, I'm happy with to average down a bit.
You're welcome. Thanks for sharing and best wishes for 2025 :)
I wish you a happy, healthy and prosperous New Year filled with adventures and discoveries! Thank you for another year packed with valuable content. I sold half of my CSWC when it shot up to the moon(I also bought it in March 2023 🙂) and added to HTGC which had seriously dropped. If CSWC drops below $20 I will add more.
Thanks for sharing! I followed similar patterns to you. I never want to own zero shares of these companies but when the valuations get crazy high I don't mind skimming some cream off the top. Best wishes for a happy and healthy 2025 :)
Thank you Mr. Armchair! CSWC is one of my favourite BDCs.
Mine too!
Very timely video, CSWC was on my shortlist for my next potential buy :)
Glad it was helpful. Thanks for watching :)
I appreciate the statistics and sources used in this video. I had just bought some MAIN last week, I see I may be buying at some overvalued prices haha. If anything ARCC is looking more fairly valued based on the Price/NAV.
Hi COTY....I always regret selling MAIN for a profit. A good strategy would have been to buy MAIN at random times, or even at the worst times...it just keeps on delivering incredible results.
I took full advantage of the drop and increased my positions considerably. Will be happy to add again if it gets below $20 (my cb is now $19.50). It's important to listen to earnings calls. Happy we're on the same page for this one.
I agree, the earnings calls tell more than the press release or filings. I'm not up to a 5% allocation yet, but I did add some.
Great info and solid analysis. Please keep producing these!
Will do! Thanks for the encouragement.
That is one very comprehensive and useful analysis. Thanks!
Glad you enjoyed it!
Starting the New Year off right on schedule :). Wishing you a happy, healthy and prosperous 2025! Great vid, thank you!
Yes! Thanks for watching and commenting so many times. Best wishes for a happy and healthy 2025! and hopefully the market will continue to be kind to us :)
The best. This year I ma dedicating to learn everything about income investing and will try to switch to 8% game next year, been taking out 4% so far!
Better to reinvest too much than too little!
@ I’m 37, I’ve been retired since 30. Some hard decisions to make. I want to leave 10% of my capital in spy in order to capture yield over the next 30 years, but I ma going to learn everything about income investments first before I make any moves. Crated a dummy portfolio on snowball, and watching it now. Thanks for your letter.
Thank you, excellent information, so well presented! Happy New Year! Like many, I look forward to these Sunday videos (West coast time zone)….
Awesome! Thank you, and Happy New Year to you too :)
I also had a large position in CSWC with a cost basis at about $17 a share, but got concerned when the fed started cutting rates(at that time i thought they were headed to about 3%) and the 65%+ premium really caused heart burn in me, so I liquidated all of it. Now the premium is in the high 20's and I might reconsider buying.Thanks for the video.
Thanks for sharing. It's worth looking back to when rates were low and how CSWC was performing at that time.
Thank you and Happy New Year!
Happy new year! Thanks for watching yet again.
Great video. I have some CSWC and I'm happy to add more. I'm strictly income investing so price return and total return is not something I worry as much about. HRZN is another one I really like but it's drop has been much more dramatic and I'm still trying to figure out why.
Thanks for sharing. I optimize for income but I don't like NAV erosion. I'm not impressed by HRZN so I don't hold it.
I just upped my CSWC position from 2240 shares to 2300. I am actually down overall by like %9 on them after their recent plunge. They still pay well and I feel they will recover or at least continue paying well which is my primary concern.
Thanks for sharing. Price has been volatile but income has been steady.
Very convincing and balanced. As a former federal bank examiner, auditor, and CPA, I am in. It’s an opportunity. I like Seeking Alpha too. I will buy more when the recession hits, I just don’t know when. I will buy sea scallops all day when it is on sale at the price of cod. Thanks.
Thanks for your feedback, especially given your background!
CSWC is one of my larger holdings.......thanks for covering it😊
My pleasure!
I have some CSWC, plus I have PBDC. Even though CSWC has a higher yield, for the future I think I'd still lean more towards PBDC for the diversification it offers.
Yes, PBDC adds far more diversification. I like to augment it with a sprinkling of some of my favorite BDC's but I like the research. For most people, following a lot of BDC's is too much of a time suck.
Thanks fo another informative video! Happy New Year!
You're most welcome. Best wishes for a happy and healthy 2025 :)
It's good to see you.
The market feels confused. The tea leaves are difficult to read.
Oil is the new Gold.
Thanks for watching. I thought attention was the new oil. These metaphors are confusing.
Good video. Happy New Year!
Thanks for the visit, and Happy New Year to you too!
Good video but I'm keeping it simple with PBDC!
I think that's a lot more realistic than trying to follow 50 BDC's :)
Excellent update, thanks. I started a small position in CSWC last week and also have PBDC. Any chance of a similar update on ASGI? Love the dry humour at 4:30 😂
I'm glad somebody got the joke! Thanks for the ASGI suggestion. Will look into it.
Such a Great channel 👏 thank you.
Thanks for your encouragement!
Thanks for this video.
Thanks for watching...as always!
Great video!
Thanks for the visit!
Your thoughts on FFRHX, low volatility and yields just shy of 8%?
I'm not familiar with FFRHX. Generally, floating rate loan funds are still delivering decent income, for as long as rates remain relatively high. 2019 to 2021 the distributions dropped by 50% so timing matters.
@armchairincomechannel If they drop, I guess all those popular CLO funds will follow suit.
You only made it thru 11 of the 6493 words from the call transcript!
I have a feeling that I would have lost a few viewers if I read the whole thing :)
That 72% drop from 2015 -2016 though 😳
In 2015 they changed their business model. It's explained in the CSWC video linked in the Description.
Lol... "restructuring" includes bankruptcy. I suspect the low end retailer was Big Lots which was sold through bankruptcy this week. It wasn't liquidated, but would assume most debtors didn't get back what was owed due to others ahead in line. That said, hopefully they took the bad news last earnings, so the impact is now off the books.
Yes, that's a good point. The recovery can be anything from 0 to 100%, but almost always less than 100%. My point was just that "Non-accrual" doesn't equate to total loss. As for the order of debtors, most of CSWC's loans are first lien, which is higher than average.
@@armchairincomechannel I'm to lazy to read Big Lots bankruptcy filings. But the order of debt repayments if memory serves correct are lawyers filing the bankruptcy, employee salaries and benefits, government taxes owed (which often ends up with zero for every else), any assets or inventory that were purchased with a pledge/terms, then secured bondholders, unsecured bondholders, preferred stock, and common stock.
Great video and thanks for sharing your knowledge. Learn something new every week. Do you think that newsletter is helping and making you money. I have no problem paying for stuff like that
Thanks for your feedback. It costs me money (for the hosting service) to produce the free newsletter so it loses money. One day I might make a paid service, but first I'd want to figure out how to make it even better! I'll look into it this year.
@@armchairincomechannel I kind of knew this would come. 😢
Excellent.
Thank you! Cheers!
As usual great video explaining the workings of CSWC, thanks a lot... I had a question about your 5% allocation limit,does this apply to all your investments or just to individual fund/companies? Specifically, if you invest in something like PBDC or BIZD which are already diversified on account of their diverse holdings , do you still hold fast to the 5% rule? Thanks for your insights...
Thanks for your feedback. I'm a little loose with the rule if there's some crossover with a fund that holds the stock. The overriding concept is not to be too dependent on the future of any one company. If it creeps up to 6 or 7 percent for the reason you outlined I'll look past it as long as it's a favorite. Also, I think the 5% cap is more important for individual companies than diversified funds. SPYI is less risky than an individual company for example.
Thank you.. Makes very good sense... All the best, regards
Thank you for a great video. Do you factor in the dividend growth CAGR when making buy decisions or is it just current yield and an ability to sustain the dividend? Kind regards.
A history of dividend growth is a huge plus, so yes, all other things being equal I'd favor that over an alternative that didn't have a history of growth. Predicting future growth is impossible but a history of dividend growth is the next best thing.
Pays quarterly but I like the dividend rate. I may add this one for fun.
If you hold enough quarterly payers and monthly payers it all blends together into a river of regular cash.
Weird, I do not see CSWC listed in the top holdings of either PBDC or BIZD.
Right...according to their respective website, here's the CSWC % of each of my fav BDC ETFs: PBDC (3.18%), LBO (1.96%), BIZD (1.81%)
Maybe they "knew" beforehand and ditched some of the CSWC shares to maybe add them back later at cheaper?
It's 3% of the PBDC fund so it's not in the top 10. You could argue that its still too expensive. BIZD is an index fund so its based on a formula, not what's "good" or "bad".
Excellent video as always. Not a CSWC question, but at your latest Armchair Insider email update, I saw you mention JAAA highly and purchase JBBB because it met your 8% criteria. Is 8% a strict cutoff or do you ever consider matching a higher yielding stock with a below 8% stock to give you a mixed yield greater than 8%? For example, I bought JAAA at 6.4% yield and EIC (BB rated CLO tranches)at 15.5% yield in a ratio 64/36 ratio that provides 9.69 yield and probably close to a mixed JBBB rated portfolio.
Great question, the answer is that 8% isn't strict. I'm looking to create a portfolio that exceeds 8% and that can include investments that pay less than 8% if they offer something of value such as: 1/ Dividend Growth or 2/ Low volatility.
I’ve been aggressively buying the recent CSWC dip.
That's a healthy form of aggression!
hi there, thanks for the video again. I used your link to sign up to Seeking Alpha, am I right that Steven Fiorillo is one of your favorite analysts? I thought I heard you mention that on one of your videos but cannot find it anymore, thanks W
Thanks for using my link. Yes, I Fiorillo is one of my favorites. I mentioned him a couple of times but can't remember which videos either. I also like Nick Ackerman, and the Gaming Dividend, and the Stanford Chemist, and The REIT forum, and ADS Analytics!
Do you ever consider the dividend payout ratio?
Yes. I covered the numbers for net income versus dividend payout in the video.
Bought at 21
Nice price :)
thoughts on BINC?
I'm not familiar with BINC. It uses a variety of fixed income asset classes to deliver low price volatility and more income than short term treasuries alone. The distributions are more volatile than what I'm looking for.
Clm, crf?
I'm not a fan of NAV erosion so they're not for me.
Hey. Great channel. So helpful!! Questions about SA if I can ask.. 1. You mentioned some SA authors you like. Any thoughts on Rida Morwa in addition to the ones you've mentioned?? Maybe not conservative enough for your income investing style?? 2. Is there a place in SA where I can simply see Earnings available for Distribution (EAD) for a given company of the 'pass through' variety as a more useful metric for such companies like NLY or ARCC than P/E?? it seems oddly hard to find metrics like EAD or Cash Available for Distribution (CAD) without looking up multiple quarterly earnings reports....
Thanks for your feedback. 1/ You're spot on about Rida. I like some of his articles but generally I'm more conservative than him so I read cautiously. 2/ Those metrics would be useful but I haven't found a database on SA or anywhere that extracts them. My guess is that its not easy for the software to pull that data in a way that's specific to the asset type.
Lost money on this one and fear a major recession this year due to Trump chaos so sold all my positions. BDCs are going to be vulnerable to any economic downturn.
You SOLD all?!?! 😳 Poor guy. The dividend income is the primary attraction AND income is what helps most in a recession…wow…
Besides, why sell at a loss when income adds to the gains and this is an income stock? 😬
117 stock market all time highs under Trump, obviously before Covid. Not being in and getting smoked is definitely a possibility. No one can predict the future should be the first thing you learn when investing of any kind (don't try to time the market).
All that said, I definitely have moments where I want to sell everything 😅
One argument says that the new administration will bring inflation and chaos, the other argument is that it will bring deregulation and lower taxes. I don't know which one is true. However, I do know that my single greatest investment mistake was to go to cash during the pandemic out of fear. That cost me a fortune. You have to sleep well at night so hold whatever achieves that goal.
@@lancealderman2755 Bidens Market beat that ATH 52 times.
@@armchairincomechannel Excellent advice and a great lesson to share.
What is your opinion of $MSDL Morgan Stanley Direct Lendin Fund?
I've looked into this BDC briefly and my initial impressions are good. It's so new that I'd like to see more data/history before seriously considering an investment in it.