MFIC
MidCap Financial Investment Corporation
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$MFIC is severely mispriced at 32% below NAV with a 13% dividend
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Very insightful. What's your guess on the impact of the daily pricing initiative and trading desk build? Would increased price transparency and secondary market liquidity compress the liquidity premium? And would that flow through to net-spread compression on new originations or would it net-expand margins by the new retail flow? Seems like it could go either way depending on whether new volume offsets the spread loss. Even though Apollo isn't immune to a refi wall it seems like they're structured to be way more resilient than the others right? In bankruptcy you can repossess the data center whereas I'm presuming the Saas-heavy portfolios can't do much...? Did the MFIC sale raise any red flags to you? NAV inflation is broadly concerning me. The stock-for-stock structure at NAV feels like a price discovery sidestep.
if you look at BXSL on yahoo finance, its share price has shown negative growth over its lifetime, and it has dropped around 20% since early 2025. 5-year total return (yield + share price growth) is negative. yield is around 12%. price of MFIC has dropped by 75% over a 20-year lifetime. its total return is maybe 11% annually over the last 5 years. yield is 10%. consider instead CEFS, an actively-managed ETF comprised of closed-end funds. lifetime (about 8 years) annual return is around 11%, yield about 6.75%. share price has grown 23% since inception. its strategy is much broader-based than BDCs, which are leveraged plays in one dimension, i.e., middle-market credit. it's the rare investment that yields more than 7% and is safe. I don't own CEFS, but that would be my play for income and growth.
yes for BXSL is a stronger long-term choice for yield because of its resilient dividend coverage and high-quality loan portfolio compared to the recent NAV pressure at MFIC.
Not sure, but that’s the description for $MFIC MidCap Financial Investment Corp, but either way massive fck up by the owners.
I’m not a financial advisor so this is NOT financial advice so you need to do the work or subscribe to a good inexpensive financial newsletter like income factory By Steven Bavaria with returns In the 8 to 12% anual returns. I’d like to give you some of his picks but I’d probably get my sub canceled. You can look at dividend aristocrats which raise their dividends year in and year out like ETF NOBL. Another more expensive newsletter is capital Exploits by Chris Macintosh which focuses out of favor stocks ie asymmetrical bets to the upside that can takes several years to payoff but they also have a high dividend list as well. If you’re young, you also have to have the stomach to withstand the ups and downs of the market. As long as the dividends/distributions remain good and you’re reinvesting those returns, you can buy more shares at a lower price. For example, I bought FRO at $14 and it went to 24 but now it’s down to 15. I don’t care, it’s still paying me around 12% and the fundamentals are still great and I can buy more shares at a lower price. I have a 5 year investment horizon so what happens week to week or month to month is not something I worry about. To quote Wayne Gretzky, I don’t skate where the puck is, I skate, where the puck is going. Might look at PTY or MFIC as examples of CEFs. Good luck, Bill.