For a second day in a row, the BDC sector failed to follow the major indices upward. Also, BDC earnings season begins with high expectations and three BDCs do not disappoint. There’s other news besides on a busy day for BDCs.
The markets move up for a second cday, with the BDC sector following some way behind. We review several BDC news items – none very important – and have a mouthful to say about the credit outlook for the lower middle market.
BDC prices slumped slightly on the day. BDC earnings season began with one disappointing result and one as expected. Also, we were surprised by a very inexpensive unsecured debt offering by a well regarded BDC.
BDC prices have started the new week with a strong showing. In the news, a preferred offering and credit developments at several BDC portfolio companies worth knowing about. Some good news and some terrible.
There were many developments in the BDC Fixed Income sector during the week that changed the landscape and outlook.
Price-wise, the BDC Fixed Income sector barely budged during an otherwise hectic week. However, two new offerings leave open the prospect of even more changes to the composition of the sector.
BDC earnings season begins with strong results from three very different BDCs as the sector remains at new price highs. We also share two important credit developments that affect multiple BDCs, drawn from the BDC Credit Reporter.
Oxford Square Capital’s IIIQ 2020 results were better than the prior quarter in one respect but worse in another. Everything else was mostly unchanged.
Oxford Square Capital kicks off second quarter 2020 BDC conference calls with a close to the vest presentation of results that seemed pretty good considering the circumstances. The BDC Reporter annotates the conference call transcript.