Kaminsky's call: new ways to generate income

Kaminsky's call: new ways to generate income


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Ever feel like venture capital is exclusive to the wealthy? Fortunately, there is a way for all investors to participate in the medium. On The Strategy Session yesterday, we detailed a


trading tool for the investment of upcoming businesses. My "C_all-to-Action"_ is to explore and consider Business Development Companies (BDC's) for your portfolio. BDC's


are public firms that invest in small businesses the way a venture capitalist would. They can be bought on the open market, and here's the best part. Janney Montgomery reports that the


average yield on a BDC is 9.7 percent. Remember, we have been discussing ways on The Strategy Session and right here in the K-Call about how in this low-rate environment, investments that


return income are extremely attractive. Falling into this category are MLP's, REITS, and high-dividend yielding stocks. Add BDC's to this list. On yesterday's show, Lawrence


Golub of Golub Capital BDC (and husband of our Fast Money friend, Karen Finerman) made an important distinction between BDC's now and in 2008.  When I asked him about the collapse of


American Capital Limitedand Allied Capital Corporation, Golub pointed out that the loan structure is much improved since then. Additionally, alignment of the fees, critical to success, has


sharpened. Shareholders get more for what they paid than they did two years ago. If you ever wanted to be a venture capitalist, or simply invest like one, BDC's are high-yielding


products that can capture share of that universe. We at The Strategy Session will continue to uncover new ways for you to generate income. _Related Links:_ * Spotlight on Business


Development Corps. * Longing for Absolute Returns PROGRAMMING NOTE: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC. DISCLOSURE:


_Gary Kaminsky does not hold any equity positions. _ DISCLAIMER: The content of this blog is published in the United States of America and persons who access it agree to do so in accordance


with applicable U.S. law. All opinions expressed in this blog are solely the opinions of Gary Kaminsky and do not reflect the opinions of CNBC, NBC UNIVERSAL or their parent company or


affiliates, and may have been previously disseminated on television, radio, internet or another medium. You should not treat any opinion expressed by Mr. Kaminsky as a specific inducement to


make a particular investment or follow a particular strategy, but only as an expression of his opinion. Mr. Kaminsky’s opinions are based upon information he considers reliable, but neither


CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Kaminsky, CNBC, its affiliates and/or subsidiaries are not


under any obligation to update or correct any information provided on this website. Mr. Kaminsky’s statements and opinions are subject to change without notice. No part of Mr. Kaminsky’s


compensation from CNBC is related to the specific opinions he expresses. Past performance is not indicative of future results. Neither Mr. Kaminsky nor CNBC guarantees any specific outcome


or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this website or on the show. Strategies or investments discussed may fluctuate in


price or value. Investors may get back less than invested. Investments or strategies mentioned on this website or on the show may not be suitable for you. This material does not take into


account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding


investments or strategies mentioned on this website or on the show. Before acting on information on this website or on the show, you should consider whether it is suitable for your


particular circumstances and strongly consider seeking advice from your own financial or investment adviser.