Thanks for watching. CLO for Dummies Article. seekingalpha.com/article/4399934?gt=d3e79e6cb3868475 Retirement Money Secrets:👉 www.amazon.com/shop/incomearchitect/list/CGU86DCD1HML?ref_=aipsflist Buy Buy me a Sweet Tea:👉 ko-fi.com/incomearchitect Income Factory Book 👉 amzn.to/3ZCzp1p Affiliate link Seeking Alpha 👉 www.seekingalpha.link/3RJ5GCX/2QZRGT/ Link to the channel: 👉 www.youtube.com/@Income_Architect?sub_confirmation=1
Hello Brad, from very cold western Pennsylvania. Thank you for doing a little bit more content on CLO investing. At one time JAAA made up almost 70% of my portfolio now it makes up 30% of my portfolio. I have been very happy with CLOZ. They seem to have a very strong management team. Distributions will more than likely change over time. Even when they do, I think the spread will be attractive compared to other liquid investments. I have been happy with both JAAA and CLOZ.
Thank you, Brad. I am in pre-retirement after an unexpected life event, so I'm learning from you, the gentleman from Armchair Investor, and several others. I appreciate your down-to-earth information videos.
That is a really helpful video, thanks. I have looked at and used JPST and CSHI for a cash position. JAAA is a higher yield. Your other mentions are higher yield but it seems they have more price swings with that. Oh and I noticed that the total return of JAAA is a little higher than the distribution.
Did a video on this so I wouldn’t have to continue to answer this question. CLM & CRF: Income Giants or NAV Traps? th-cam.com/video/Rg2CFd7B1MY/w-d-xo.html
Nice video I’m in CLOZ, but I also like SEIX and XCCC can you check those out and do a video if interested on your assessment. SEIX is senior loan fund and XCCC is corporate bond triple cc rated but most people don’t know they have very low default rates as well
It's weird that the sawtooth happens exactly on the Ex-Dividend date, when the ETF withdraws the distribution amount from the NAV! I'm sure it is just a coincidence, though. If I had a nickel every time the price dropped on the Ex-Dividend date, ,I'd have at least *two nickels.*
Thanks for the video. However regarding EIC, you are looking at EIC's debt tranche not their equity tranche. SPMC as I understand it holds no debt tranches. You can't compare it to EICs debt tranches. Otherwise you'd be comparing SPMC equity to EIC debt. Please show me the source of your data if I'm wrong about this.
So you're saying SPMC holds no debt. I better call them to tell them they can't show that they have 25.3% BB- and above on their fact sheets. A little sarcasm there. Trust me no offense taken for keeping on track. So here are the sources below. I am comparing apples to apples. SPMC are higher up the tranches. BB- and above is Debt and B+ and below is Equity. The amount of B and greater is significantly higher for SPMC and PDCC. Yes, I know that is in the equity tranche but I broke it down by each rating for Friday's video. As EIC hold 23% in the Debt tranche BB- and greater. Each line is BB+ and greater BB- and greater and so on. SPMC holds 25.2% in the Debt Tranche BB- and greater. PDCC is 26.1% Debt tranche BB- or greater. The biggest difference is B and greater. I am looking at B and greater. Hope that explains the table below. EIC holds more B- and below than the other two. With 34.9% and SPMC 21.1% B- and below PDCC is 21.9% B- and below. Not an issue with EIC having 34.9% in B- or less, but the other two clearly are higher on the ratings. PDCC SPMC EIC BB+ or greater 7.80% 8.30% 5.00% BB- or greater 26.10% 25.20% 23.00% B+ or greater. 43.20% 41.80% 38.70% B or greater 78.10% 78.90% 65.10% B- or less 21.9%. 21.1%. 34.9% www.eaglepointincome.com/documents/FG/eaglepoint_ic/ir/640883_EIC_Monthly_Portfolio_Update_December_2024.pdf s203.q4cdn.com/683785430/files/doc_downloads/2024/12/December-2024-SPMC-Summary-of-Portfolio-Investments.pdf secure.alpsinc.com/MarketingAPI/api/v1/Content/pearldivercreditcompany/pearl-diver-credit-company-llc-fs-20250116.pdf
@@Income_Architect I see how you've broken things down, but I think your breakdown is missing that 98.22% of SPMC is on the equity side. SPMC's breakdown is as follows: PORTFOLIO SUMMARY AS OF 12/31/2024 0.4% CLO Debt 98.22% CLO Equity 1.38% Fee Notes So SPMC consists mostly of just CLO equity (rated below debt). If SPMC is rating its Equity, it isn't or shouldn't be on the same scale as the debt tranches that EIC has. Equity should always be rated below the debt tranches. I'm going by the following diagram which always shows CLO equity at the bottom with the debt tranches on top according to Investopedia. Structure of a CLO AAA Tranche AA Tranche A Tranche BBB Tranche BB Tranche Equity Tranche Maybe I'm misinformed or you can point to my misunderstanding, but this is how I've been comparing various CLOs to each other.
Great catch SPMC is using moody’s rating and EIC is using S&P rating. Each qualifies equity and debt differently. This makes my life so much more complicated. I found a crossover chart from international banking so I will have to redo the information. Not sure 🤔 how much of a difference it will make until tomorrow. Looks like moody calls one equity and S&P calls one debt on the scale. So I will adjust the apple cart to the cross over. Thanks for catching that. Who would have thought they would show things on different scales. I will share the crossover in the description and pin comments tomorrow. Great point of discussion about these guys using to different scales.
At time 5:23 you mention "probably a larger person sold a bunch of shares". I don't see how a persons figure is relevant here. Just because I like to dip my hand in the cookie jar and get a few tranches of cookies, shouldn't effect my investment returns 😀
Still prefer your informative videos over the testosterone filled name callers video, who pretends he is an income investor but really just a trader trading dividend paying etfs. Only so much of the same old name calling joke one can handle!
Thanks for watching.
CLO for Dummies Article.
seekingalpha.com/article/4399934?gt=d3e79e6cb3868475
Retirement Money Secrets:👉 www.amazon.com/shop/incomearchitect/list/CGU86DCD1HML?ref_=aipsflist Buy
Buy me a Sweet Tea:👉 ko-fi.com/incomearchitect
Income Factory Book 👉 amzn.to/3ZCzp1p
Affiliate link Seeking Alpha 👉 www.seekingalpha.link/3RJ5GCX/2QZRGT/
Link to the channel: 👉 www.youtube.com/@Income_Architect?sub_confirmation=1
I love the CLO vids. Thanks for putting them out, buddy!
Some of us love CLO videos.
Appreciate the detail comparison charts. Also thx for the heads up on SPMC. Interesting, only 7 months old. Adding to my watch list.
Going to talk about that one and PDCC another new one in Fridays video.
Love the bar charts and comparisons! Thank you!
Yes, those are important and most people might think they are all the same (Equity) is equity, but not always.
Thanks for this - I'm not in any CLO funds yet and want to understand them better before investing so this helps.
CLOs are different just keep in mind as you go down the list the high the premiums but higher the risk.
Hello Brad, from very cold western Pennsylvania. Thank you for doing a little bit more content on CLO investing. At one time JAAA made up almost 70% of my portfolio now it makes up 30% of my portfolio. I have been very happy with CLOZ. They seem to have a very strong management team. Distributions will more than likely change over time. Even when they do, I think the spread will be attractive compared to other liquid investments. I have been happy with both JAAA and CLOZ.
@LanceSoFast1 CLO video on Friday. Not much happens with CLOs is the issue. I hope to go over their monthly reports on the funds that I own.
@@Income_ArchitectSounds good. No news is good news sometimes.
Sometimes no news is good news. 😅
Another informative video! Thanks!
Glad you liked it!
appreciate the review on this , never had heard of them - they seem good non-correlated assets to have
Correct 👍. Not everything has be a stock or bond to make you money.
Thank you Brad.
Very welcome
Thank you, Brad. I am in pre-retirement after an unexpected life event, so I'm learning from you, the gentleman from Armchair Investor, and several others. I appreciate your down-to-earth information videos.
Your welcome. I like Armchair he does a great job.
Thanks Brad!
You're welcome!
That is a really helpful video, thanks. I have looked at and used JPST and CSHI for a cash position. JAAA is a higher yield. Your other mentions are higher yield but it seems they have more price swings with that. Oh and I noticed that the total return of JAAA is a little higher than the distribution.
Never thought about CSHI. Thanks for sharing.
All my cash in Fidelity is in JAAA and CLOZ CLOs. From here I DCA daily in all my 12 covered calls ETF.DRIP all the dividends. All good.
I just use JAAA. CLOZ I just leave as an investment. But works both ways. Thanks for sharing.
Hi just wondering whats your take on closed end funds like corner stone 🧐
Did a video on this so I wouldn’t have to continue to answer this question.
CLM & CRF: Income Giants or NAV Traps?
th-cam.com/video/Rg2CFd7B1MY/w-d-xo.html
CLM & CRF: Income Giants or NAV Traps?
th-cam.com/video/Rg2CFd7B1MY/w-d-xo.html
Nice video I’m in CLOZ, but I also like SEIX and XCCC can you check those out and do a video if interested on your assessment. SEIX is senior loan fund and XCCC is corporate bond triple cc rated but most people don’t know they have very low default rates as well
I will check it out. They look interesting thanks for sharing
How about CLOI?
Yes thats a CLO. I can make a 5 hour video and cover each one or a little at a time.
Hi Brad, What % of your Investments are in each of these charts. I am esp. interested in: CLOZ, EIC, & SPMC.
@sdrs95a I share all that information with the members. I will say cloz is one of the bigger holdings. SPMC I just started as its a new fund.
It's weird that the sawtooth happens exactly on the Ex-Dividend date, when the ETF withdraws the distribution amount from the NAV! I'm sure it is just a coincidence, though. If I had a nickel every time the price dropped on the Ex-Dividend date, ,I'd have at least *two nickels.*
Lots of nickels.
Volume was quite lower today not sure if you changed something
Do you drip the jaaa while you wait so all your cash is activated?
I take the cash. Only drip are CEF.
Would FSCO not be in this category? Or do you have a different portfolio allocation for Senior Loans?
I think the title was CLO.
Sorry spoke too soon. Just holding your cash there is certainly different than long term holds.
Yep. Just waiting for the next trade.
I love CLO'S cash printing machines.
Everyone loves a good CLO
Thanks for the video. However regarding EIC, you are looking at EIC's debt tranche not their equity tranche. SPMC as I understand it holds no debt tranches. You can't compare it to EICs debt tranches. Otherwise you'd be comparing SPMC equity to EIC debt. Please show me the source of your data if I'm wrong about this.
So you're saying SPMC holds no debt. I better call them to tell them they can't show that they have 25.3% BB- and above on their fact sheets. A little sarcasm there. Trust me no offense taken for keeping on track. So here are the sources below. I am comparing apples to apples. SPMC are higher up the tranches. BB- and above is Debt and B+ and below is Equity. The amount of B and greater is significantly higher for SPMC and PDCC. Yes, I know that is in the equity tranche but I broke it down by each rating for Friday's video.
As EIC hold 23% in the Debt tranche BB- and greater. Each line is BB+ and greater BB- and greater and so on.
SPMC holds 25.2% in the Debt Tranche BB- and greater. PDCC is 26.1% Debt tranche BB- or greater.
The biggest difference is B and greater. I am looking at B and greater. Hope that explains the table below. EIC holds more B- and below than the other two. With 34.9% and SPMC 21.1% B- and below PDCC is 21.9% B- and below. Not an issue with EIC having 34.9% in B- or less, but the other two clearly are higher on the ratings.
PDCC SPMC EIC
BB+ or greater 7.80% 8.30% 5.00%
BB- or greater 26.10% 25.20% 23.00%
B+ or greater. 43.20% 41.80% 38.70%
B or greater 78.10% 78.90% 65.10%
B- or less 21.9%. 21.1%. 34.9%
www.eaglepointincome.com/documents/FG/eaglepoint_ic/ir/640883_EIC_Monthly_Portfolio_Update_December_2024.pdf
s203.q4cdn.com/683785430/files/doc_downloads/2024/12/December-2024-SPMC-Summary-of-Portfolio-Investments.pdf
secure.alpsinc.com/MarketingAPI/api/v1/Content/pearldivercreditcompany/pearl-diver-credit-company-llc-fs-20250116.pdf
@@Income_Architect I see how you've broken things down, but I think your breakdown is missing that 98.22% of SPMC is on the equity side.
SPMC's breakdown is as follows:
PORTFOLIO SUMMARY AS OF 12/31/2024
0.4% CLO Debt
98.22% CLO Equity
1.38% Fee Notes
So SPMC consists mostly of just CLO equity (rated below debt).
If SPMC is rating its Equity, it isn't or shouldn't be on the same scale as the debt tranches that EIC has. Equity should always be rated below the debt tranches. I'm going by the following diagram which always shows CLO equity at the bottom with the debt tranches on top according to Investopedia.
Structure of a CLO
AAA Tranche
AA Tranche
A Tranche
BBB Tranche
BB Tranche
Equity Tranche
Maybe I'm misinformed or you can point to my misunderstanding, but this is how I've been comparing various CLOs to each other.
Great catch SPMC is using moody’s rating and EIC is using S&P rating. Each qualifies equity and debt differently. This makes my life so much more complicated. I found a crossover chart from international banking so I will have to redo the information. Not sure 🤔 how much of a difference it will make until tomorrow. Looks like moody calls one equity and S&P calls one debt on the scale. So I will adjust the apple cart to the cross over. Thanks for catching that. Who would have thought they would show things on different scales. I will share the crossover in the description and pin comments tomorrow. Great point of discussion about these guys using to different scales.
The sawtooth pattern is not from someone selling out of a position. It's caused by the monthly dividend pay out.
Well I see that I need to write it down. I said when it’s not the sawtooth but standard TH-cam comment.
For us income investors, kind of hard to get excited about 6 or 7 percent dividends IMHO
It's a better than a 18% drop like the sp 500 did in 2022. Don't forget that.
100% people for get about those drops. That is why I keep saying diversification. Live on 8% and be happy. 😃
@@Income_Architect True that
At time 5:23 you mention "probably a larger person sold a bunch of shares". I don't see how a persons figure is relevant here. Just because I like to dip my hand in the cookie jar and get a few tranches of cookies, shouldn't effect my investment returns 😀
Ok, I hope your doctor appointment is soon for the comment syndrome performance.
@@Income_Architect I'm hoping my husky can be classified as a therapy dog for my CPAD (comment performance anxiety disorder).
@@sweetdividends My wife laughed hard at that comment.
❤🎉😊
Thanks for watching
Still prefer your informative videos over the testosterone filled name callers video, who pretends he is an income investor but really just a trader trading dividend paying etfs. Only so much of the same old name calling joke one can handle!