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BDC Wrap-Up: Thursday August 23 2018

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DAILY NEWS

There were two items on the day, none deserving of a full feature article but both posted to the Daily News Table:
  • HTGC loses a Controller. His replacement raises a question – whose answer may be banal – about whether the BDC is partly outsourcing its financial management.
  • A CSWC purchases shares in the BDC.

 STOCK WATCH

The UBS Exchange Traded Note with the ticker BDCS – which is based on the Wells Fargo BDC Index – was up 0.15% on the day from the opening price, ending at $20.74.

That may be up on the day, but still below yesterday’s close of $20.788.

As yesterday, no BDC moved up  or down 3.0% on the day, or even came close

Another very slow day where trading in BDCS is concerned

Sluggish.


BDC INVESTOR

Premium subscribers received an article detailing one of the Best Ideas we’re tracking for our Long Term Income strategy: a BDC that has been out of favor for several months but might offer a double digit annual return if held for 5 years.

We listed the main premises for our confidence; detailed the key valuation assumptions and highlighted the risks involved.

We also discussed when the right time might be to hit the Buy button.

Timing, if not everything, can make a difference to a Total Return.

As for our own investing, we have capital to deploy in our fixed income oriented fund and purchased a major position in the latest SAR’s Baby Bond with the ticker SAV at $25.00.

[Premium subscribers who missed our in-depth review of SAR’s latest fixed income offering can catch up by clicking here.]

In another portfolio – also mostly fixed income focused – we sold a smaller position in PSEC’s Baby Bond with the ticker PBY.

No immediate concerns about PSEC – which is reporting annual results shortly – but there are better risk-return opportunities elsewhere so we made room.

Both transactions are reported in the Investment Disclosure.

 

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