Using an article in the FT about a rise in corporate bankruptcies as a starting point, the BDC Reporter offers our view as to whether we are headed into a credit crisis.
The markets were not deterred by gridlock in Washington about the debt ceiling. The BDC sector came to the end of first quarter earnings season relatively optimistic on the back of record earnings, with more growth to come. Is a return to rally mode next?
The week ended May 26, 2023 had all sorts of developments, including the last BDC to report IQ 2023 earnings; details on a new Baby Bond; a dividend increase and much more. There are also multiple credit headlines from BDC Credit Reporter.
After 3 weeks of data mining, the BDC Credit Table is up-to-date and almost complete, with only one BDC having not yet reported its IQ 2023 results. We discuss the credit highlights from what turned out to be a surprisingly uneventful 3 months.
With the macro picture still bleak, BDC prices nevertheless moved up this week. Whether this is a flash-in-the-pan or the beginning of a rally is not yet clear, but long term the outlook – in the eyes of the BDC Reporter – is clear-cut.
We use the opportunity of an article in Bloomberg about a spate of recent bankruptcies to cool the rhetoric about what is happening in credit – especially where public BDCs are concerned.
Despite a robust earnings season, BDC sector prices continue to disappoint – a phenomenon now over a year old. To provide perspective we review how BDC prices have fared in the historical short, medium and long term and peer – as best we can – into what lies ahead.
BDC investors – after a fortnight of indecision – voted with their feet, causing a broad-based drop in prices. We review the numbers and offer a dark guess at what comes next.
There were no new bankruptcies of public BDC-financed companies this week, but there were two new non-accruals and a well-known business reaching the brink of failure. We also had a first look at Ares Capital’s IQ 2023 credit results.
Another quiet week for BDC prices, continuing a lull that began after the Silicon Valley Bank failure. Will the apparent closure of Republic Bank roil prices again going forward ?
We’re republishing the weekly Market Snapshot written for our sister publication BDC Best Ideas to familiarize anyone unaware of this useful tool for would-be investors.
There were multiple credit developments affecting BDC-financed companies including two infamous bankruptcies but also a successful restructuring. We provide many high level details while preparing for even more credit setbacks ahead.
All continues to be quiet on the BDC price front for yet another week. Even the news flow is slow. Will BDC earnings season – just a week away -bring about a change in what has been an up and down year so far ?
First we review the latest BDC credit developments for the week and next we consider some of the latest statistics about bankruptcies as reported by the WSJ.
There was a little break in the clouds overhanging the BDC sector this week. We run the numbers and provide a wider perspective.
