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BDC Market Recap: Week ended February 17, 2017

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We’ll call Week Seven of 2017 Lucky 7, as the BDC Sector closed at $23.49, using the Exchange Traded Note with the ticker BDCS as our usual guide.

That’s the highest level of the year in absolute terms, and that’s without folding in the BDCS dividend received earlier in the year.

That’s up from $23.19 the week before, and $22.96 the week before that.

In two weeks, BDCS is up 2.3%.

MOVING TOGETHER

36 of the 45  public BDCs we track are at a price above both their 50 Day  Day Moving Average.

38 are trading above their 200 Day Moving average.

36 of 45 are trading within 10% of their 52 Week High.

That’s 1 more than last week.

LEFT BEHIND

As we’ve noted previously only a handful of BDCs have been missing the BDC Rally.

In another sign that a rising tide does lift all boats , only 2 BDCs are within 10% of their 52 Week Lows.

Those are Great Elm Corporation (GECC) and Fifth Street Finance (FSC).

We’ve discussed both BDCs in recent weeks. GECC has a credit concentration problem and FSC just cut its dividend sharply.

Judging by what’s happening to a few other BDCs that have been in the sector’s basement in recent weeks, both could yet move up in price.

As we discussed in a  recent report, beleaguered Medallion Financial (MFIN) has been on the rise, up 17% this week alone.

80/20 RULE

9 of the 45 BDCs we track-or 20% of the total-are under-performing.

Each of the 9 has cut its distribution in recent months, which accounts for their stock price drop.

The other 80% are doing very well, and that’s a pretty good proportion.

ALL QUIET:  REDUX

Once again, BDC Baby Bonds had a quiet week.

The rule of thumb median of the prices of 39 issues that we use to measure progress was at to $25.51 from $25.57 the week before.

That’s not a material difference in what is a very rough and ready measuring mechanism.

EQUAL

About half the BDC Notes are trading above their 50 Day Moving Average and half below.

Ditto if you look at 200 Day Moving Averages.

Once again, there are 5 issues at $26.00 or higher.

EXCEPTION TO THE RULE

Again, there is only one BDC Baby Bond trading below $25.00 par.

SAME TROUBLE SPOT AS ALWAYS

The only “distressed” Baby Bond is Medallion Financial’s Note with the ticker MFINL.

The price has crawled back to $15.25 from $14.60 last week.

WRAP UP

The BDC common stocks remain in full “bull run” mode while Baby Bonds are just sitting quietly.

 

 

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