Before heading off on my three week vacation, I decided to make a couple buys to decrease the
amount of idle cash in my portfolio.
Banks don't hold stack a pile
of idle cash in a corner of the vault to maintain these reserves.
As a consumer or a small business owner, you want a stable cash position to help maximize earnings by making the
most of any idle cash.
Managements want to prevent hostile takeovers through not leaving a
lot of idle cash on the balance sheet.
Since Lending Club is more popular with borrowers, it's also a good place for investors who cringe at the
thought of idle cash.
The only other (negative) metric I'd highlight is an increase in Cash Net Interest / Adjusted EBITA to 11.6 % — but I'm not concerned as there's EUR 90.1
mio of idle Cash available to mitigate this, if necessary.
The trick that I've run into is the number of opportunities is limited so I have a
lot of idle cash, maybe the eREIT is a good way to get around that?