Income investing expert Bryan Perry is spilling the details on a shocking story that no one is talking about.
It's about a secret income contingency plan called “PBN Income,” and we can take advantage of it with as little as $20.
The Teaser
Before leaving the White House the first time around, President Trump signed something into law that is one of the best-kept income secrets on Wall Street.
Bryan Perry spent more than two decades on Wall Street before transitioning to income strategist at financial newsletter publisher Eagle Financial Publications.
He describes his approach to investing as “set it and forget it,” so it will be interesting to see what long-term income vehicle he recommends here.
Getting back to the teaser, Bryan writes that “$10,000 income from an average bank savings account could have been transformed into an incredible $3,650,000 in income” under Trump's secret legislation.
So what is this legislation and how exactly does it offer “disaster-proof income” for all Americans?
A $1.3 Trillion Omnibus
It was 2018 and the government was on the verge of shutting down.
In the middle of all this, Trump told Congress he would “never sign another bill like this again,” before proceeding to put his signature on a bipartisan $1.3 trillion spending package to keep the federal government funded.
The bill also boosted military spending, with the largest military budget in history, increased spending on border security, and included something else…
Business Development Companies (BDCs) gaining access to additional capital to lend to small and mid-sized businesses.
When Bryan mentions massively reliable “PBN Income,” he's talking about the fact that BDCs are regulated investment companies required by law to pay out 90% of their profits to shareholders.
All of the biggest and savviest investors on the planet, such as Warren Buffett, alternative asset manager Blackstone, and Brown University's endowment fund, are collecting “PBN Income,” and now we can too.
Bryan has compiled a list of the eight best “PBN Income” opportunities he could find for the next 12 months.
The Pitch
Everything is revealed in a report called 3 Steps to PBN Income.
The report is ours if we subscribe to Bryan's income investing research service: Cash Machine, which costs $99.95 for the first year.
Included in the offer are a 30-day money-back guarantee, regular in-depth research reports on new income investment opportunities, two bonus reports, and live VIP conference calls including the man, the myth, the legend himself, Bryan Perry.
Higher & Safer Yields Than Any Other Traditional Income Source?
Investors have been starved worse than a man on a self-imposed fast when it comes to yield.
Consider this, before rising recently, both Treasury and investment-grade bonds yielded less than 2% for years.
Such bonds make up the vast majority of investments for insurers, banks, and others with piles of other people's money they need to put to work.
So it shouldn't come as a shock that big banks are now turning to BDCs for some extra yield.
The likes of JP Morgan, Well Fargo, and Bank of America are collecting a combined $100 million-plus in BDC income this year!
This means when you deposit money at any of these institutions, they are likely just going to partially invest it in BDCs anyway, pay you their tiny interest rate, and keep the difference for themselves.
Cutting Out The Middleman
Now that you are in the know about BDC stocks, you can cut out the middleman and go directly to the source for as little as $20, which is how much some BDC shares cost.
They are regulated by the SEC, required by law to pay out 90% of their profits, and the yields top most other traditional income sources:
All told, there are more than 40 BDC stocks listed.
However, Bryan has compiled a list of what he considers the best, safest, highest-paying BDCs available. Let's try to find out what they are.
The Best BDCs For Your Buck?
Unfortunately, Bryan doesn't say anything more about his BDC picks, as he just learned about StockExposer and knows that his teaser would be next to get exposed.
That being said, we did our usual internet sleuth work and were able to find some BDC picks that Bryan made public in the past.
PennantPark Investment Corp. (NYSE: PNNT) is the oldest of these picks, originally made at the MoneyShow in 2020, and it sports an attention-grabbing 13.6% annual yield.
The next three BDC picks were all made last year:
- Capital Southwest Corp. (Nasdaq: CSWC)
- Trinity Capital Inc. (Nasdaq: TRIN)
- SLR Investment Corp. (Nasdaq: SLRC)
Each has an outsized dividend of 11%, 14%, and 10%, respectively, and tends to trade in a narrow range.
But wait, there's more…
We were also able to dig up an even more recent op-ed from this summer, in which Bryan name-dropped two more BDCs:
- Apollo Investment Corp. (since taken private)
- PennantPark Floating Rate Capital (NYSE: PFLT)
To be clear, there's no way to know if any of these picks are still part of Bryan's Cash Machine portfolio today, but they are a good sample of what Bryan is looking for in a BDC investment, which we review next.
Guaranteed Disaster-Proof Income?
Throughout the teaser, Bryan makes several references to BDCs providing “guaranteed disaster-proof income.”
However, there is nothing guaranteed about the dividend yield and disaster-proof is a far stretch.
There are several reasons for this, starting with the nature of what BDCs invest in to be able to offer such tempting yields.
This usually entails debt or equity investments in large, mid-size, and small private businesses, making them similar to private equity or venture capital firms.
These kinds of investments are not for the faint of heart and BDCs have an added layer of risk that even most PE and VC firms don't have – debt.
See, BDCs often borrow money at a lower rate, say 5-6%, lend it out at a higher rate, like 11-12%, and pocket the difference, making them highly leveraged businesses.
During good times and low-rate environments, like the kind we are in now, the model works. But when the reverse is true, look out below.
If we look at Bryan's previous BDC picks, like PennantPark for example, we can see that they are diversified across asset types – senior secured debt, subordinated debt, non-controlling equity, and business type, focusing on several industries they have deep expertise in.
Bryan also takes it a step further by investing in a small basket of BDCs, which is the prudent approach here.
Quick Recap & Conclusion
- Bryan Perry is teasing a secret income contingency plan called “PBN Income,” which we can take advantage of for as little as $20.
- What Bryan is really pitching is an investment in Business Development Companies (BDCs), which provide credit to small/mid-size private businesses and offer whopping dividend yields commensurate with this risk.
- A list of the eight best BDC investments has been compiled in a special report called 3 Steps to PBN Income. It can be ours if we subscribe to Bryan's income research service: Cash Machine, at a price of $99.95 for the first year.
- Not a single detail is revealed about any of Bryan's “PBN Income” picks, but we were able to find a few he made in the past, including PennantPark Investment Corp. (NYSE: PNNT), Capital Southwest Corp. (Nasdaq: CSWC), Trinity Capital Inc. (Nasdaq: TRIN), SLR Investment Corp. (Nasdaq: SLRC), and PennantPark Floating Rate Capital (NYSE: PFLT).
- BDC income isn't guaranteed or disaster-proof but during boom times BDCs thrive because they are a bet on the heart of the US economy. From this standpoint, now may be an opportune time to consider a well-diversified basket of BDC stocks.
Will BDCs boom over the next four to five years? Drop a yes or a no in the comments.