Summary
BANX Chart
BANX: 9%+ Distribution Yield With Monthly Pay (Upgrade)
ArrowMark Financial offers unique exposure to regulatory capital relief securities, delivering attractive, high-yielding, and floating-rate exposure. A rights offering earlier this year pressured BANX's share price, widening its discount to NAV and creating a tactical opportunity for investors to sell pre-RO and repurchase post-RO. Since the RO, the price has remained under pressure, which helps to provide an attractive entry price.
BANX: Why Bank Reg-Cap Shouldn't Be Overlooked By Income Investors
ArrowMark Financial offers exposure to regulatory capital relief securities, yielding 9.1% and trading at a 6% discount. BANX's portfolio is high quality (BB+ to BBB-), but transparency is poor, and fees are high at 3.3% of assets. Relative to BDCs and CLO equity funds, BANX appears expensive and delivers lower net yields after fees and leverage.
ArrowMark Financial: Collect 11% Yields From Major Banks
ArrowMark Financial transformed from a regional bank lender into a unique vehicle for regulatory capital relief securities after ArrowMark Partners' 2020 takeover. BANX offers retail investors access to high-yield, floating-rate instruments from globally systemic banks, a niche otherwise inaccessible to individuals. The fund's 11% forward yield is fully covered by net investment income, with NAV stability and special dividends likely to decline as Fed rate cuts materialize.
ArrowMark Financial Corp. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| AWM Accurate Wealth Management LLC Accurate Wealth Management LLC | 11,388 | $249,610.76 | $227,418.36 | -$22,192.4 | -8.89% |
| RS Richard Slavik Newbridge Financial Services Group Inc. | 200 | $4,186 | $3,997 | -$189 | -4.52% |
 Chris M. Frantz Catalina Capital Group, LLC | 15,717 | $326,493.27 | $315,754.53 | -$10,738.74 | -3.29% |
 Lee Larson Everstar Asset Management, LLC | 47,345 | $993,948.25 | $951,161.05 | -$42,787.2 | -4.3% |
 Highline Wealth Partners LLC Highline Wealth Partners LLC | 135 | $2,946 | $2,712.15 | -$233.85 | -7.94% |
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ArrowMark Financial Corp. Profile
| NASDAQ (NGS) Exchange | US Country |
Overview
ArrowMark Financial Corp. operates as a closed-end balanced mutual fund, which was established on February 7, 2013, and is based in the United States. The mutual fund is launched and managed by ArrowMark Asset Management, LLC, indicating a professional and focused approach towards investment management. ArrowMark Financial Corp. has positioned itself to invest broadly in the public equity and fixed income markets on a global scale, showcasing its commitment to diversified and comprehensive investment strategies.
Products and Services
- Equity Investments
The mutual fund invests in the equity portion by focusing on stocks of companies operating primarily within the financials and banks sectors. ArrowMark Financial Corp. leans towards both growth and value stocks, indicating a flexible approach to capturing opportunities across diversified market capitalizations. This strategy is aimed at generating returns through careful selection of stocks based on their growth potential and value assessment.
- Fixed Income Investments
For its fixed income portfolio, ArrowMark Financial Corp. shifts its focus towards investments in debt and subordinated debt, structured notes, and securities, as well as regulatory capital securities. Importantly, it opts for instruments that are rated below investment grade. This choice underscores the fund’s strategy of seeking higher yields through increased risk, a common approach in the management of fixed income assets seeking to enhance portfolio returns.
