Where the S&P index goes, the BDC sector follows – this week at least. The future direction will be determined by BDC earnings. Earnings will be shaped by credit performance. We discuss both in a wide ranging discussion illustrated with a great deal of exclusive data from the BDC Reporter.
This week, interest rates changed course, affecting pricing in the BDC Fixed Income sector, but not too much yet. Otherwise, there were no other developments this week but that could change in the rest of 2019 and – possibly – provide insights into what the future of the BDC Fixed Income segment might look like.
A bad week for the major stock market indices affected the BDC sector just beginning its earnings season, but has anything essential changed ?
Price changes in the BDC Fixed Income sector were consistent with expectations and prior periods. However, there was one unexpected development at the end of the week that might portend a major change in the size of the BDC publicly traded unsecured debt sector.
On one hand, BDC index prices moved up again. On the other hand, other data we use to measure investor enthusiasm for the BDC sector was unmoved. We seek to reconcile this contradictory picture, while looking forward.
Notwithstanding a quiet, holiday shortened week, BDC common stock prices reached a new 2019 milestone.
A mid-summer doldrums week for the BDC sector as a group, but a big development at a smaller sized BDC keeps things interesting.
The BDC sector joined the broader market rout, ending the 5 month long BDC rally. Besides the battle over tariffs, there are other threats to the sector, as we discuss.
We annotate an article by Retail Dive about troubled retailers with additional information and analysis about BDC exposure and what we can learn from what has happened to date.