Re: HGLB
Your observation about dangers of forced liquidation prompted me to look over the balance sheet for it. It does have huge leverage so a drop in valuations would no doubt prompt forced liquidation of some assets to reduce the outstanding debt. Its an issue that bears watching.
Thanks for the alert!
I also saw this about the debt:
At March 31, 2019, current outstanding and fair value amounts were $131,336,963 and $138,776,751, respectively.
The balance sheet used the current outstanding as the liability, but fair value would seem to imply that the debt was valued at a prem so the reported nav was overstated by the dif. I've never seen something like that before but the Dondero vehicles are definitely different.