UBS 2X Leveraged Long Wells Fargo Business Dev Co Index ETRACS (BDCL)

interest rate related... trading higher
i think the load up time is fast approaching

plus the dividend is sitting at a nice 20.71% today... i will add to my position

got it ... i will act accordingly thank you very much

1) interest rate rising. they are leverage 2x so they take your $100, borrow another $100, and invest $200 in BDCs (simplified explanation). That way they get twice as much yield. However, they pay interest on what they borrow so you really don't get twice the earnings but is a nice return for sure ... 18% right now? However, as interest rate rise, cost of borrowing rises increasing cost which raises fear.
2) BDCs haven't faired well for a good period of time and maybe oversold. When their value goes down 10% the leverage effect has more like 20% down. Sounds bad, but as I said BCD are on the oversold side ... i.e., low. So when they go up 10% it's more like a 20% rise ... IMO there is some upside coming. But people sell low so I can buy low and I'm happy for that.
3) It's indexed. Unlike us who can chose to hold a stock for sunnier days (unless we are on margin and face a margin call), they have to buy and sell based on the index to keep it all balanced. It is how they are set up-- nothing can be done about that.

Don't fret on ups and downs -- they happen. So play it that way and buy low, collect that sweet DIV, and sell high ... then wait for another LOW here or elsewhere and play it all again. There are always opportunities ... but some are certainly better then others

so they reduced their dividend too? now it seat at .68 that annualizes it to $2.72 ,,,,this must be one the reason for the pps decline,,,any other reason for that 25% decline in the price of the shares?

i can’t find any report or news on it

the reason for the stock price decline?

I should have said total return (Div + share price). I think I originally bought around $20 and it's shy of $15 so I lost $5 there (although I did leverage down as I bought more). Divs for that period were $6 plus so I'm still ahead. Of course as the stock goes up I make back some price loss. As the saying goes, it's not a loss nor a gain till you sell.

oh i got it now .... if you bought when the shares were higher off course the yield diminishes? is this what you meant to tell me?

i don’t get it... why is the yield overtime not good ? isn’t it the same yield of 20th% even if u buy today?

I had for years and div payments are good, what isn't is the total yield over time unless you bought some at recent lows.

what’s the history of this etf when it comes to the dividend payments?

Looking gooood

Market notwithstanding this climbs like a one way trip to the moon....

Amazing profits here....

Nice bounce here... This just continues to outperform...

Holding up fairly well considering how the market has been...

Nice Div and huge rebound... This continues to outperform...

Wow... This just continues to outperform everything else out there...

Unreal... Think it's a bit too much though right now...

Amazing climb continues here... Enjoying the ride...

Continuing to move up steadily here... A real winner...

Nice day today for BDCL... After an EOD run up yesterday and pursuant sell-off this AM there was a nice recovery... Yield still seems to be at or around 17% for the upcoming July dividend...