A strange week for the broad markets, which filtered through to the BDC sector. We discuss short and longer term price trends; developments out of the SBA that could have major sector ramifications and note early signs of weakness in the credit markets that might make headline status in the weeks ahead.
In a routine week for BDC Fixed Income prices, there were two major developments worthy of attention.
Record low interest rates – and the promise of more to come – boosted up BDC Fixed Income prices. With a couple of exceptions…We also review the latest Baby Bond and speculate about what comes next.
The median BDC Fixed Income price drops slightly but investor enthusiasm remains high. We look forward to how Fed actions might affect prices in the very short term. Also, a new Baby Bond becomes the 43rd BDC public debt issued.
A large IT company files Chapter 11. Four BDCs are lenders. The BDC Credit Reporter assesses the likely damage. [Includes an update on Great Elm’s position]
Great Elm Capital announces a share repurchase program – a popular initiative in the BDC sector in recent months. We analyze the possible impact on the BDC’s share count and stock price.
The BDC Reporter finds much new information in Great Elm’s Conference Call transcript and 10-K filing, some of which may be exciting to some investors and worrying to others.
The BDC sector has a very good week almost across the board, despite few developments as investors jockey for position before earnings season. We discuss at length one factor that could prolong the rally and briefly (teasingly ?) mention another.
Mixed messages about the short term direction of the BDC Sector. The BDC Reporter, though, quantifies how drastically the shape of the sector will change in the next 2 years and which could yet cause BDC prices to shift.
BDC Fixed Income prices drop along with about everything else as rates rise. However, we look beyond to the changes being wrought by BDC enthusiasm for the Small Business Credit Availability Act. This could go any number of ways.