The third BDC to announce a Rights Offering in the wake of the pandemic has just completed the process: Great Elm Corporation. We take a first look at the numbers involved and will discuss the long term impact in a future article.
A portfolio company held by Great Elm Corporation has been restructured and downgraded by S&P. We re-publish an article from the BDC Credit Reporter and place the troubled credit in perspective.
Another BDC calls on existing shareholders to inject additional equity capital via a Rights Offering. Principal intended use: investing in financial services companies. More analysis to follow.
Great Elm’s second quarter 2020 results were not encouraging. The BDC continues to face major challenges and management is mulling a change in strategy…
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.
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.
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.
This is nominally an article about an underperforming Great Elm portfolio company, but mostly a dissertation on how BDC credit defaults might divide into three distinct waves in the months ahead. Here we mostly review the “second wave” but keep an eye out for what might be following behind.
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 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.
The BDC Reporter has reviewed the Great Elm IQ 2020 conference call transcript and provides a list of highlights.