A strange week for the broad markets, which filtered through to the BDC sector. We discuss short and longer term price trends; developments out of the SBA that could have major sector ramifications and note early signs of weakness in the credit markets that might make headline status in the weeks ahead.
Investcorp has arranged to acquire the investment advisor of under-performing CM Finance. We review how the transaction is structured and what the impact might be on the shareholders of this lower middle market focused BDC.
Publicly traded Fusion Connect files for Chapter 11 after acquisitions go wrong. We discuss the impact on the two BDCs involved in the financing and what’s been happening to other bankrupt BDC portfolio companies.
The BDC Fixed Income market was softer on the week, but that may be a short term phenomenon. More importantly, a BDC raised new unsecured debt in a manner that may be very instructive for the future of the sector.
A bounce back in BDC Fixed Income prices during a short week. Otherwise, we learn what we can from Prospect Capital’s latest debt offerings and review likely early debt redemptions. (This is the full version of the article. An earlier version was truncated by pixies for reasons unknown).
BDC Fixed Income prices soften, but probably for a transient reason. More importantly, the “leveraging up” of the BDC Sector begins with two new issues and the dynamics of the industry begin to change. One of those Good News/Bad news stories.
CM Finance issues its first Baby Bond in preparation for amping up portfolio size and leverage next year thanks to the Small Business Credit Availability Act. We delve into the economics both for CMFN and what this might mean for the sector as a whole. Warning: Many numbers ahead and an unsettling conclusion.
The BDC common stock rally edges forward in a quiet week for the sector. What BDC shareholders decide in the weeks ahead may change the momentum.
As forewarned earlier in the week, BDC common stocks are in rally mode, and may go higher. The BDC Reporter, though, looks a little further out…