$PSEC Questions

How do BDCs account for assets on their balance sheets? Can you tell by looking at their financial statements and public statements as to the quality of their assets?

Can you explain to me why it seems like they overpay their management here on a net dividend basis? Is this normal? What happens to management payments if their bets don't play out? Why do people say that management gets paid more when things go bad? Is that the case here? How does that impact future income levels if the assets are bad? How high up in the capital structure are these assets and how are they valuing the companies and what are the values of the companies? What sort of people own these companies?

Why do people say that they sell shares under book value to raise capital? Is that good business? If so, how? Does it make sense to think that you'd get your money back if you bought it now at this price with their current historical path forecasted out into the future? Is this actually appearing to trade at a significant to what it is worth? Is this a trap? Is this a hole in the floor? Is management running things into the ground over a multi-year process where they walk out the back door having taken on assets with more risk than reward long term?