The BDC sector moved upward on the week, following the major indices renewed optimism. The BDC Reporter, though, shares its concerns about what might happen in the remainder of 2019 and into 2020.
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.
The BDC Fixed Income sector continues to trade at record high levels, but there are two exceptions which bear watching, and which could yet give the segment a black eye.
We re-publish an article from the BDC Credit Reporter, covering the Chapter 11 filing of one of Prospect Capital’s largest borrowers, which has been in trouble for several years. The BDC Credit Reporter believes a major loss will need to be recorded by PSEC.
As the risk-free rate drops to new lows, existing BDC debt holders are not benefiting. In fact, we worry about what the week ahead – if the current trends continue – might bring. We also update BDC Fixed Income news and the Fixed Income Table.
BDC Fixed Income reaches a notable milestone. Plus, we discuss a bifurcated debt issuance market.
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.
