Analyzing Reverse Mortgages
The reverse mortgage market is dominated by the HECM (“Home Equity Conversion Mortgage”) program, where the Federal Housing Administration (“FHA”) provides a guarantee against default. This underutilized asset class offers a very attractive income stream, with low correlations to broader markets and is accompanied by the same credit rating as U.S. Treasuries, which is currently AAA rated.
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Year End 2020 Commentary
The A3 Alternative Credit Fund (AAACX) had a net return of 4.88% in 2020. Since inception (10/1/19), the Fund has a total net return of 8.58%. We continue to see tremendous opportunities in allocating capital towards high quality, high income assets. Today 78.93% of the portfolio holdings are U.S. Government Agency securities, which have an “implied AAA rating” and carry the full faith and credit guarantee of the U.S. Government...
Q3 2020 Commentary
A3 Financial Investments was formed in 2019 to help investors find quality income in their portfolios through our alternative credit expertise. We launched our fund, the A3 Alternative Credit Fund (AAACX) September 30, 2019 with an objective of constructing a portfolio of non-correlated, niche, structured credit investments that provides for an attractive income stream to our investors...
Q2 2020 Commentary
The A3 Alternative Credit Fund (AAACX) had a net return of 1.08% in June and 5.25% year-to-date in 2020. Since inception (10/1/19), the fund has a total net return of 8.95%. We continue to see tremendous opportunities to allocate our fund’s capital towards high quality, high yielding assets...
Q1 2020 Commentary
This has certainly been an extraordinary start to the year for the credit and equity markets. As the realities of the tragic, global spread of COVID-19 unfolded on investors, we saw some violent downdrafts and exceptional volatility. As you know, our focus at A3 Financial is on the credit markets and we believe we are moving towards a de leveraged environment with a premium placed on credit quality and cash flows...