Our first Guest Contributor-and CEO of Saratoga Investment (SAR)-Chris Oberbeck provides useful advice to Millennials about getting started in Business Development Company investing. You can also follow Chris on his own regular blog and on Twitter.
The BDC Credit Reporter notes that there is a "depression" underway in U.S. rail freight brought on by oversupply of coal on the tracks and in storage, and with the long term trend towards ever lower volumes, the sector needs paying attention to. We add rail freight to our Sector Watch List.
The BDC Credit Reporter is concerned about the knock-on effect of the brewing crisis in Puerto Rico on Business Development Companies with exposure to companies operating there. We sum up what we know about which BDCs have made investments in debt and equity in that troubled isle.
We do not only track what is happening to individual companies in BDC portfolios, but also entire sectors facing unusual and unexpected stresses. We've identified 6 so far and start with the obvious: Oil & Gas. What could have been avoided has turned into a huge set-back for many BDC companies, and may play out for much longer, and with even worse results.
The Fifth Street Senior Floating Rate(FSFR) election, where shareholders had the chance to vote in dissident Board members and even kick out the existing manager, has ended in a draw. The BDC Activist brings readers up to date, and underscores why this was a historic occasion, even if the immediate outcome remains unclear.
The BDC Credit Reporter has a look at BDC behemoth, and popular favorite, Ares Capital (ARCC) after a big Unrealized write-down in the IVQ of 2015. First signs of the Apocalypse or meaningless blip or something in between ? Management is sanguine. We are ambivalent as we show with plenty of facts and figures.
The BDC Credit Reporter updates an earlier article about BDC exposure to the Retail sector with a new entrant: Things Remembered, an Ares Capital portfolio company. We provide background details and Breaking News about the hiring of a turnaround firm...We also wonder if we need to take a broader look at the impact of falling mall traffic.
Fidus Investment (FDUS) has issued its annual Proxy and asked shareholders-as usual-to approve the ability to issue new stock below Net Asset Value, if deemed appropriate by the Powers-That-Be. The BDC Activist cheers the Company's long term performance but questions whether shareholders and manager are on the same page...
A leading institutional corporate governance advisory organization has come out in favor of the proposals advanced by "activist" Ironsides Partners in the upcoming shareholder vote at Fifth Street Senior Floating Rate. We provide details and analysis. However the BDC Activist remains uncertain what outcome will best favor FSFR's shareholders. CORRECTED VERSION.
With a shareholder vote coming in April, BDC Activist revisits the challenge of Fifth Street Senior Floating Rate by Ironsides Partners, who seek to appoint 2 directors to the Board, fire the External Manager & sell the BDC to improve the stock price from the current huge discount to book. New dawn for BDC activism or dead-end ?