First time interview with Paul Sankey. This was a wide-ranging conversation about the current tumultuous Macro and Geopolitical environment, with EXTENSIVE Show Notes on Tariffs & Current Events.
Excellent interview with Paul . Question regarding ECC , you mentioned you hedge this vehicle , can you share do you hedge it dollar for dollar , are the hedges permanent or are you just using your own market timing ? It appears that the equity falls as much or more than the high dividend . Does one have to believe that we are at a market low to invest in ECC ? Thank you in advance
Thanks. CLO Equity is volatile, but it certainly doesn’t always fall. It’s complicated but the current conditions have been causing nav declines from mark to market but given the high avg reinvestment period, it has huge optionality to rebuild back so I am not concerned. I might write a CLO Equity primer in the near future.
Extremely appreciative for the kindness of your reply . Is there a private way I can send you a message ? Thanks
Excellent interview with Paul . Question regarding ECC , you mentioned you hedge this vehicle , can you share do you hedge it dollar for dollar , are the hedges permanent or are you just using your own market timing ? It appears that the equity falls as much or more than the high dividend . Does one have to believe that we are at a market low to invest in ECC ? Thank you in advance
Keith Rudman
Thanks. CLO Equity is volatile, but it certainly doesn’t always fall. It’s complicated but the current conditions have been causing nav declines from mark to market but given the high avg reinvestment period, it has huge optionality to rebuild back so I am not concerned. I might write a CLO Equity primer in the near future.
Rumors of the end of American Exceptionalism have been greatly exaggerated.
Great notes. Looking back at the receipts is the best way to keep in check.
Interesting thoughts & enjoyed the whole note.
Thanks Michael!