Of babies, bonds and Friday night dumps

No, this is not about toilet training for babies at the start of a weekend. But

Baby bonds: business development companies (BDCs) sell bonds at as low as $25. Hence baby bonds. They use proceeds to invest in small companies, buy them outright. The money they raise is part of a mutual fund which obviously receives investor money. Like hedge funds they charge 2% of assets plus 20% of profits. But unlike mutual funds the assets include money raise by issuing baby bonds. So more binds they issue, more fees they get to charge. Nice racket.

Paraphrases from sat wsj.

Re: Of babies, bonds and Friday night dumps

The yield is 5 to 6% over 30 years. Not bad. But not great. Since 30 yrs is a long time. But the big losers appear to be the mutual fund investors who get the honor of paying more in fees.

Re: Of babies, bonds and Friday night dumps

How about that Friday night dump? No, not the newspaper reading variety. Companies have been using Friday late evenings to dump bad news onto the public. Takes the sting out by the time Markets reopen Monday.

Paraphrased from sat wsj

Re: Of babies, bonds and Friday night dumps

Emails regarding firing of certain employees are also normally sent out on Friday afternoons/evenings.

Re: Of babies, bonds and Friday night dumps

Indeed. Lockheed Martin CEO case where he had an affair was most recent example.