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.
First week of BDC earnings season and the sector moved up in price, but so did the broader indices. We review our regular metrics and several BDC winners and losers from a price standpoint and identify who might move markets in the weeks ahead.
We annotate Harvest Capital’s IVQ 2018 earnings conference call, following a recent dividend cut caused by a shrinking balance sheet. The BDC has high hopes for the future. We are more circumspect.
The BDC mini rally hangs in there for another week. We discuss who was up and who was down and the lessons learned. Plus, we provide our best guess as to the short term outlook.
As forewarned earlier in the week, BDC common stocks are in rally mode, and may go higher. The BDC Reporter, though, looks a little further out…
Up, down and all around the BDC Sector moves in this past week. However, the Ides of March still point mostly to Down, as we illustrate.
BDC common stocks had another tough week. Matters could get worse. Much worse, as we discuss. However, we end on an optimistic note.
Harvest Capital is the third BDC to cut its distribution in 2018. The BDC Reporter- which had an AT RISK rating – updates its Dividend Outlook for the rest of 2018.
On August 24, 2017 Harvest Capital issued a filing and a press release regarding its existing Baby Bond issue. The BDC News Of The Day reviews the details, analyzes the impact on the BDC and its Note Holders. We follow up with a broader discussion of both positive and negative trends underway in the vibrant Baby Bond market. We mention – for the first time – the gorilla that just entered the room.
On August 21, 2017 Harvest Capital (HCAP) issued and priced a new Baby Bond. We provide key details and analyze the impact on the BDC’s income statement and balance sheet. Then the BDC Reporter’s adds some value with its assessment of the risks and opportunities involved with both HCAP’s common stock and unsecured Notes. We conclude with a frank admission of how we are likely to invest going forward. We may surprise you …