B. Riley initiated coverage of Sound Point Meridian Capital with a Buy rating and $22.50 price target Sound Point is part of a new class of closed-end funds capitalizing on the cash flow arbitrage that exists within collateralized loan obligation equity, which generates mid-teens un-levered returns, the analyst tells investors in a research note. The firm believes the company’s seed portfolio should enable it to scale efficiently, growing earnings as it adds debt to the capital structure.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SPMC: