Investment hypothesis – Leveraged Fixed Income Fund
I’m considering investing into PIMCO’s GIS Income Fund and am setting out some thoughts and consideration in evaluating this investment. A snapshot of the key commercials: Instrument: PIMCO GIS Income Fund Class E (“PIMCO”) Distribution yield (pre-leverage): ~4% Leverage multiple: 2.5x Borrowing rate: 0.5% fixed spread + 1 month SIBOR. Current rate at (Feb 2021)…
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Rent-seeking and its implications for the economy
As part of my work with startups and companies, I’m often asked to evaluate the business opportunity or the potential profitability/revenue of the Company. Investors most of the time evaluate whether to invest in a company depending on, in simple terms, how profitable they see the company being in the future. What I find though…
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