Capitala Finance provides a third quarter 2020 positive surprise but long term questions abound.
A Capitala Finance portfolio company in the healthcare field appears to have been restructured in the IIQ 2020, resulting in an upgrade from the BDC Credit Reporter. However, a realized loss seems to have been incurred and questions remain.
The BDC Reporter annotates Capitala Finance’s IIQ 2020 conference call transcript and asks some hard questions about the future of the BDC.
Capitala Finance’s IIQ 2020 results failed to impress the BDC Reporter even if a couple of metrics headed in the right direction. Here is our First Look drawn from the BDC News Feed and more will follow after the conference call is held.
The famous restaurant chain is the ninth BDC-financed company to file for bankruptcy in July and there are multiple BDCs involved in both the first and second lien debt. Re-published from the BDC Credit Reporter.
BDC Fixed Income prices zigged when common stock prices zagged this week. We explain how but can’t help sharing our doubts with readers about a quarter of the public BDC universe and what that might mean for their debt prices down the road.
Nominally, this is a re-published BDC Credit Reporter about a drop in the value of bankrupt portfolio company Bluestem Brands, in which three public BDCs are involved. It’s actually an opportunity for the BDC Reporter to discuss a worrisome trend: a decline in recoveries on troubled investments. The implications for the BDC sector could run into the billions of dollars.
The median price of the BDC Fixed Income issues we track dropped for a second week in a row. Nonetheless, other data suggests the public BDC debt sector is headed for expansion and higher prices.
BDC sector prices offer mixed messages even as the S&P ekes out a win. We also discuss a disconcerting increase in bankruptcies and the newest public BDC.
While BDC common stocks and the markets fluctuated widely this week, BDC Fixed Income’s movements were less spectacular. In terms of news, we focus on MVC Capital’s latest results and the implications for its Baby Bond holders.
“What goes up will come down” as BDC sector prices proved this week as volatility resumed. Also there were other notable developments including equity capital raised; a surprise dividend and important shareholder approvals. We also discuss the surprising change the size of the BDC sector is likely to take in the days and months ahead.
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.