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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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...