BANX ArrowMark Financial Corp.

ArrowMark Financial Corp. (BANX) Company Description

The companys primary investment objective is to provide stockholders with current income, and to a lesser extent, capital appreciation. The companys strategy is focused on income generation, capital preservation, credit quality and providing risk-adjusted rates of return. StoneCastle Financial Corp. invests in term loans, senior and subordinated debt securities, convertible securities, preferred equity and common equity. The investment strategy emphasizes risk-adjusted rates of return and value creation for shareholders. The Schedule of Investments can be found on the Companys website. Current investments are 30.2% in credit securitizations, 22.2% in term loans and other debt securities, 14.9% in preferred stock, 13.5% in pooled equity interest, 12.8% in ETFs, 2.2% in trust preferred securities, and the remaining 4.2% in other securities.2 A majority of the companys underlying investments are scored investment grade (BBB- or better) by Kroll Bond Rating Agency (KBRA). As a regulated investment company, StoneCastles leverage is limited to a maximum of 33.33%. The Company has approximately $98.6mm of total investments attributed to community banks and $11.7 million of total investments attributed to alternative capital securities in the investment portfolio.