Yet another BDC raises its regular distribution. This time it’s Capital Southwest. We discuss the background to this second increase in so many quarters and what might happen next to the BDC’s payout.
We re-publish an article from the BDC Credit Reporter about the sorry state of a BDC portfolio company held by half a dozen players.
We annotate the recent Capital Southwest Corporation conference call and find many subjects to discuss, including the promising look for earnings and dividends.
Capital Southwest reports its IQ 2022 and fiscal full year results, closing out BDC earnings season. With a potential recession on everyone’s mind, the BDC’s performance was encouraging.
Capital Southwest announces a regular and a special distribution for the second quarter and provides an opportunity for the BDC Reporter to discuss the complexities of estimating BDC distributions.
We use the example of BDC portfolio company California Pizza Kitchen to discuss the broader subject of restructured investments and the challenge posed to investors by the uncertainty and time frames involved.
We undertake a deep dive into Capital Southwest’s investment portfolio, with a focus both on the underperformers and the upside opportunities to realistically assess what net book value will look like over time.
The markets were in the black on Tuesday and the BDC rally continued. There were multiple news items, including an increased dividend and new senior managers at a large cap BDC plus positive credit developments at Capital Southwest.
For a second day, the markets were all over the place but the BDC sector moved up in price. We discuss how BDCs have performed so far in this mini-crisis. Otherwise, we learn more about a new portfolio company at Horizon Capital and a troubled borrower causing worries for two public BDCs.
BDC sector prices increased even as most of the major indices faltered. Also, we highlight some interesting conversations and data generated by Saratoga; note Ares Capital’s latest trip to the capital markets and Capital Southwest’s most recent portfolio investment in what was a busy day.
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.