Capitala Finance abandons trying to mend relations with its Revolver lenders and closes the facility. We review where that leaves the BDC’s financing, liquidity and future.
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.
BDC Fixed Income prices race up, ever closer to “normal”, leaving only a handful of debt issues in the basement. Even there, there’s an upward tilt, which we discuss.
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.
BDC Fixed Income prices moved up sharply on the week and the sector reached a favorable milestone. However, there are still several BDCs whose future is far from assured. We name names and get into the weeds to discuss them and their specific debt issues.
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.
BDC Fixed Income prices seemed to be headed in one direction just a fortnight ago, but now are moving in unexpected ways. We discuss both sector trends and the path of individual issues and what the future might hold, which is likely to be very different from the past.
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.