2024-04-07 20:54:13 ET
Summary
- Atlanticus Holdings specializes in providing financial solutions to underserved communities through consumer credit brands.
- The company issued a baby bond that is currently trading near par, with a coupon yield that makes it a favorable investment for income-seeking investors.
- Atlanticus values loans on fair value, which makes its adjustments a bigger factor in net margin than interest expense.
Atlanticus Holdings ( ATLC ) is a niche consumer lending company that specializes in providing financial solutions to underserved communities. The company owns several consumer credit brands that partner with various health and retail corporations to provide credit solutions to their customers. Recently, the company issued a new baby bond with a 9.25% coupon ( ATLCZ ). The bond is callable in January 2026, matures in January 2029, and is currently trading near par. Based on the company’s performance and the risks it faces, I believe the baby bond investment is the best avenue for income-seeking investors....
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Atlanticus Holdings: Niche Lender Offering 9.25% Baby Bond