04-20-2021, 07:24 AM
(04-20-2021, 06:40 AM)ken-do-nim Wrote: Makes total sense. I wonder why it shot up so high given it's enormously high payout ratio.Income chasers, sheer momentum? Probably the latter at this point. It's hard to know when to sell anything. That payout ratio doesn't work for long. They need to find higher yielding loans as old ones are paid off. Much of the reason they crash is when the market decides conditions have changed and default rates will rise. If they are not followed by an analyst their required reports are about the only place to see details. I really don't have the skills to truly understand the quality of their loan portfolio. I have a few that I buy and it may be awhile before they trade at fair value. You could just buy and hold the best ones if you don't mind watching three or more years of dividends vanish in capital loss. The best ones recover if your entry was near a sane valuation.