Prospect Capital yet again raises new unsecured debt. We focus on how this financing fits into the BDC’s business model and leaves shareholders wanting.
Prospect Capital’s earnings and stock price are up. Both an analyst and the BDC Reporter – for similar but still different reasons – are not convinced.
BDC Fixed Income moved up modestly in quiet week. However, changes are underway in how some BDC debt is rated which could have major implications.
The famously stable BDC Fixed Income market seems a little anemic. However, that’s nothing compared to what may happen as BDCs position themselves around the Small Business Credit Availability Act.
The BDC Reporter begins by reviewing a tiny unsecured debt offering by Prospect Capital, which segues into a much wider review of the BDC’s liability management and the hidden risks that both debt holders and common shareholders face.
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.
Nothing much happening in the foreground where BDC Fixed Income is concerned. In the background, though, the scene is being set for a huge expansion of the sector.
A very quiet week for BDC Fixed Income prices but two BDCs surprise with debt buybacks. In the future, though, the BDC Reporter expects much more issuance and redemption activity.
BDC Fixed Income prices do nothing very surprising on the week. However, the BDC Reporter is startled by Prospect Capital’s newest Baby Bond offering and its implications for the BDC debt market more generally.
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.
Prospect Capital is tapping the public market for unsecured debt. Here are early details, analysis and the BDC Reporter’s initial speculations, plus an update.
The BDC Common stock rally hangs in there for another week. The BDC Reporter – in a thoughtful mood – looks backwards and forwards at both stock prices and credit risk.
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…