Stellus Capital reports its final dividends for 2022. This is an opportunity to review what the outlook for the BDC’s might look like in the year(s) ahead, even in the face of a prospective recession.
After a brief pause most of the major indices were up, including the BDC sector. One high flying BDC is using the opportunity to issue new shares. We focused principally on a detailed credit review of Apollo Investment.
The major indices rolled onward and upward, but the BDC sector lagged on the first day of the month. A mid-sized BDC dropped sharply in price in advance of earnings that turned out to be pretty good and another player announced a special payout for IQ 2022 already.
The major indices were all up in price on Thursday. So was the BDC sector, ending up just below record levels. Plus, two new BDCs reported earnings, another raised 10 year unsecured debt and another for 5 years while a third player quietly launched a new joint venture. Busy days.
After several days of angst, the major indices – and the BDC sector – bounced back with vim and vigor. Also, a mid-sized BDC increased its regular distribution for a second quarter in a row. We discuss what that might mean for the stock price.
The new month/week began with a modest BDC price rise. However, there was shocking news from one of the most popular – and idiosyncratic BDCs – out there just as earnings season shifted into high gear.
BDC sector prices gained substantially after doing the opposite the day before. Is this drawdown over or have we just begun ? Plus, a BDC raises its dividend and boost its price and two Baby Bonds get early redemption dates.
Stellus Capital had a “solid” IQ 2021 and more of the same seems to be forthcoming in the quarters ahead.
Stellus Capital is switching its dividend frequency again. We review why the BDC is switching back to a monthly payout and what that tells us about the outlook for future dividends.
We share an article from the BDC Credit reporter about a Stellus Capital portfolio company that has filed Chapter 11.
In a follow-up article, we fill in the details about the Stellus Capital unsecured debt raise. The BDC Reporter, though, also shares its thoughts on the BDC’s increasing leverage levels.