A leading auto parts conglomerate with billions of dollars in debt has just filed for bankruptcy which is causing concerns in the credit markets. We have an in-depth look at the BDC sector’s involvement in this setback and discuss whether we should be worried about further shoes dropping.
Market observers will already know this: Week 39 was a terrible, no good one for BDC investors, especially those invested in financial underperformers and newly public players. Nonetheless, we de-construct the recent data and also review where the sector stands at this point in 2025. Finally, we offer up what a BDC “bull” – if one still exists – might argue about the future price outlook.
Main Street Capital – like many other BDCs – has been busy of late issuing and repaying debt. We have a look at the BDC’s latest refinancing, what is coming down the road and the implications for the balance sheet and profitability of this ever popular player.
BDC prices are taking a beating. In the past few weeks the sector is substantially down and the number of individual stocks at a new 52 week low this week is reaching record levels. We take a look at all the new 52 week lows to determine what can be learned from the identities of the BDCs reaching their nadirs.
On hearing of Palmer Square Capital’s latest dividend, we were inspired to calculate how much the BDC’s earnings and dividend might change if we really get the big drop in short term rates that so many investors are counting on. This takes us all the way out to 2027 and all calculations are very hypothetical.
There have been too many BDC junior debt issues of late to discuss individually. Instead, we compiled a table of all the debt raised in the IIIQ 2025 and discussed some of the trends which show up. We come away pretty encouraged.
For the third week in a row BDC prices were down, but not as much as they could have been going by the first few days of the week. The year-to-date results for the sector are mediocre at this point with 14 weeks to go, but a few individual BDCs are flying high nonetheless. Looking forward, we muse about possible price and dividend outcomes for the sector.
One of the largest public BDC has set a new 52 week price low. FS KKR Capital may be the first of many to reach new depths as the BDC market has suddenly turned antsy.
For the past few days Gladstone Capital has been announcing significant changes to its debt facilities. This week, the BDC filled in the picture further, which has allowed us to quantify what the impact on its balance sheet and income statement will look like for the next year and a half.
As so often happens of late, the major indices and the BDC sector moved in different price directions this week. We discuss which BDCs were the most affected. We also take a clear-eyed view at where the BDC sector stands on the eve of short term rates being reduced again. There are numerous scenarios that could play out beyond a (0.25%) Fed rate cut and we discuss many of them.
Once again, one of the newest public BDCs – MSC Income Fund – has reached a new price low. Is this the bottom ? We have an opinion.
Gladstone Capital has tapped the Convertible market to raise funds to meet upcoming debt obligations. This has caused a big drop in the BDC’s stock price but the BDC Reporter believes this was an appropriate action which the BDC’s shareholders may learn to appreciate.
A month ago Kayne Anderson BDC promised a refinancing of its own debt stack was in the offing. Now that a private placement has occurred, we can begin to evaluate its impact on the BDC’s borrowings costs, earnings and balance sheet. We don’t have all the answers, but it seems like the BDC’s interest expense will be coming down, but there’s much else to consider.
Prospect Capital has promised to focus only on investing in “sponsor backed” middle market companies going forward. We have a look at whether this just announced transaction fits the bill.
The BDC sector moved down in price this weeks, as two of the major indices moved higher. Price-wise, though, both the sector and most of the BDCs we track remain in a narrow price channel that even lower interest rates in mid-September might not change. However, we have taken a longer term view and assessed what the impact might be on BDC prices up to 2027 if the market consensus for short term rates plays out. You might be surprised by our conclusion.
Everywhere all at once BDCs seems to be raising unsecured debt in one form or another and on good terms. Goldman Sachs BDC is doing so as well. Unfortunately, in the short term, the BDC’s interest bill will continue to grow…
Very unexpectedly, we learn that Horizon Technology Finance is issuing a new Convertible loam, custom made for an institutional investor. This is just one of many moving parts where the BDC, and its shareholders, are concerned.
Great Elm Capital is redeeming one of its many Baby Bonds outstanding three years early. We discuss the motivation behind the move and the complex, two stage nature of the redemption.
All of a sudden we hear that PennantPark Floating Rate has struck a deal which will materially boost the size of its portfolio. We review the details and what we know and what we were not told.
In a just published SEC filing Ares Capital discloses recent investment commitments exited, including a huge “net realized gain”.
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