The BDC sector reached yet another price record – the tenth in a row – on a day where one BDC left the scene and another succeeded in reducing its costs once again.
Not much changed in BDC Fixed Income prices during the week, but there were a series of comings and goings that continues to reshape the sector. Watch out ! There’s more to come.
Harvest Capital is to merge into Portman Ridge, continuing a public BDC consolidation process. We analyze what we know about the merger but also look at the bigger picture of a changing BDC landscape.
A portfolio company of Harvest Capital that was on non accrual and in Chapter 11 has been sold, as discussed by the BDC Credit Reporter. We provide some details about how this affects the BDC’s overall credit position.
Another Harvest Capital portfolio company has gotten into trouble and filed for Chapter 11. Using BDC Credit Reporter data, we update the number and value of underperforming and non performing companies at the BDC. We also review where the BDC sector stands in terms of new portfolio company bankruptcy filings.
The BDC Fixed Income sector was not to be left out of the general price reflation that occurred across all markets in the week ended June 5. Is the market about to “get back to normal” ? We consider the evidence and note a major omission.
For a second week BDC common stock prices rally along with the broader indices. However, there’s a very long way for prices to go before returning to pre-Covid levels and multiple challenges ahead.
Harvest Capital and its secured lenders come to an agreement that will require the BDC to repay its outstandings in the months ahead. We review the details of the agreement and the likely impact on the BDC, both in the short and long term.
BDC Fixed Income prices drop slightly in the week. We discuss the challenges the weaker BDCs face and how that’s translating to the value of their debt.