A compendium of BDC-related credit developments for June 1, 2020.
BDC common stock prices leapt upward in the week ended May 22, narrowing the loss since Covid-19 began. Will the price healing continue ? The BDC Reporter has doubts, which we explain at length.
The huge BDC rally of the week before came to a halt, but there were plenty of interesting and unusual price and news developments. The BDC Reporter takes this opportunity to worry aloud about what may lie ahead from a credit standpoint in a very uncertain economic, political and financial environment. Read with a stiff drink.
The BDC Reporter describes the terrible, horrible, no good week just passed for the BDC sector, but cannot offer much in the way of immediate hope that we are at a turning point yet. As best we can, we look ahead as the extent of the damage to expect comes – very slowly – into focus. There are elegant solutions available here but will either the Federal government or Wall Street be up to the challenge.
What starts out as the BDC Reporter’s estimate of what might happen to Apollo Investment’s book value at the end of the IQ 2020 morphs into ideas about who might be able to save the BDC sector from the dire consequences of the current crisis, and how. A rare instance of the BDC Reporter getting on a soap box, albeit with the best of intentions.
We have updated the Apollo Investment IVQ 2019 results summary which we first published on February 17, with a brief review of what has happened to the stock price and to the valuation metrics through March 6, 2020.
The BDC Reporter re-publishes an article from Leveraged Commentary & Data about third quarter 2019 trends and uses the opportunity to discuss some of the fundamental changes going on before our eyes in how the sector does business.
We’ve been reading the Apollo Investment Conference Call transcript with an eye on how the BDC might address its recent downgrade by Fitch to non-investment status. We’ve developed a pretty good idea of what to expect next from the veteran BDC with the famous name.
The stock markets may have pulled back on coronavirus fears but BDC Fixed Income prices did not flinch. Also notable during the week was an unexpected change of heart by a rating group and also one new debt issue and one debt redemption. Looking down the road, we also question how the public BDC debt space might change in the months ahead.
First few days of 2020 for the BDC sector, whose rally seems to be in neutral. Most of the news developments in the period were on the credit front.
We annotate Apollo Investment’s conference call transcript for the third quarter 2019 and tackle some thorny items as even handedly as we know how. As always, our annotations are in bolded italics between the text of the transcript.
We review two Apollo Investment portfolio companies that have filed for bankruptcy and use the opportunity to discuss what we’ve learned about the BDC’s credit underwriting capabilities at this stage.
The BDC Reporter summarizes everything you need to know about Apollo Investment’s third quarter results. Like in the prior period, the BDC’s performance has been a mix of sweet and sour.