yospaghetti

Do you know a market maker of a private note with no rating not registered with the SEC at a 25 bps spread?

I completely agree that if you have market information on spreads or agent commissions that is 100 percent the way to go. Just wondering where you're getting your rule of thumb from.

Not knocking it, just want to know - that's good info.

yospaghetti

Beta Private Wrote:
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> Do you know a market maker of a private note with
> no rating not registered with the SEC at a 25 bps
> spread?
>
> I completely agree that if you have market
> information on spreads or agent commissions that
> is 100 percent the way to go. Just wondering
> where you're getting your rule of thumb from.
>
> Not knocking it, just want to know - that's good
> info.

I do consulting work for a well know BDC. They typically add 25 bp for their non-traded notes when valuing their portfolio. These are $250 MM offerings though, so a larger premium would probably be applicable to smaller issues. I don't know how much more though.