We discuss a record-breaking week for BDC Fixed Income and the continuing shift in who’s financing the BDC unsecured debt pile.
The broad market indices bobbed around in the week and the BDC sector followed suit. We discuss two BDCs that did well, and four that did not and project out how the rest of the year is likely to play out.
The BDC Reporter reviews in great detail the credit performance and outlook of Medley Capital following the publication of the second quarter results. The value of the portfolio is a critical element of the two different transactions currently being weighed by the BDC.
The BDC Fixed Income segment had another good week, with one notable exception where Medley Capital is concerned. We explain why the troubled BDC – and its debt holders – are not out of the woods yet.
The BDC sector followed the major indices down. And then up again. However, the second week of BDC earnings season was not an unalloyed success and future market direction is in question.
The risk free rate hits a new low but BDC Fixed Income prices remain unmoved. We discuss market prices; credit ratings past and future and close with a three year chart.
In a routine week for BDC Fixed Income prices, there were two major developments worthy of attention.
Over recent weeks, the BDC sector has been headed nowhere. The BDC Reporter, though, reminds readers why eternal vigilance is necessary, drawing from a decade of experience, and what cause cause a market moving change to occur.
Medley Capital amends the deed of trust with its Israeli Baby Bond holders, as we anticipated on July 5. We discuss – as best we can given the spotty disclosures – the implications for the BDC’s shareholders and debt holders.
BDC Fixed Income prices are unchanged and no new public issues have come to market. Nonetheless, two privately placed debt issues that occurred in the week are a lead-in to a broader discussion of BDC Fixed Income risk and opportunity.
Price changes in the BDC Fixed Income sector were consistent with expectations and prior periods. However, there was one unexpected development at the end of the week that might portend a major change in the size of the BDC publicly traded unsecured debt sector.
On one hand, BDC index prices moved up again. On the other hand, other data we use to measure investor enthusiasm for the BDC sector was unmoved. We seek to reconcile this contradictory picture, while looking forward.
There may have been a sea change in the direction of rates late in the week, but BDC Fixed Income prices did not follow in the holiday shortened week. Otherwise, the only news worth discussing came out of Medley Capital. However, another BDC might be about to launch a new unsecured debt issue…
Notwithstanding a quiet, holiday shortened week, BDC common stock prices reached a new 2019 milestone.
Hot off the digital press: a new twist in the Medley saga that will be of interest to both debt and stockholders: Medley Capital has made an offer to its Israeli unsecured debt holders that they might find hard to refuse.