Prospect Capital Plans to Raise Capital through Spin-Offs
Prospect Capital (PSEC) is targeting spin-offs in order to raise capital to be redeployed in asset classes yielding higher returns.
Prospect Capital’s (PSEC) stock has declined by ~13% over the past six months and ~27% over the past 12 months.
Prospect Capital (PSEC) continues to make use of leverage to generate higher returns. The company’s 4Q15 debt-to-equity ratio increased to 77.6%.
The Anatomy of a Closed-End Fund
When looking for ways to invest internationally, the amount of choices can be daunting. Closed-end funds can be an efficient way to gain exposure to international regions.
“Home bias” can sizably limit an investor’s portfolio by reducing its ability to capture additional sources of return.
As of June 2015, Ares Capital’s (ARCC) stock declined by ~5% over the past 12 months. The company paid a dividend of $0.38 per share—at par with the year before.