Astrea 7 PE Bond is basically a set of bonds secured by the cash flow from private equity (PE) Funds.
Think about it this way. You take 38 different PE Funds. You put them all together into a $1.9 billion portfolio. And you borrow $755 million secured against this $1.9 billion portfolio. And from the $755 million, you slice it up into Tranche A ($555 million) and Tranche B ($200 million). Tranche A gets paid first, then Tranche B (which means Tranche A is less risky)....For investors with cash to spare, 2022 has been like Christmas come early.
A sell-off in REITs, stocks and bonds.
And now Astrea 7, with 4.125% and 6% yields.
A ton of you have reached out to ask for my views on the Astrea 7 PE Bonds, and whether it’s worth buying.
Lots to cover today, so lets go!
What is the Astrea 7 PE Bond?