The BDC Reporter describes the terrible, horrible, no good week just passed for the BDC sector, but cannot offer much in the way of immediate hope that we are at a turning point yet. As best we can, we look ahead as the extent of the damage to expect comes – very slowly – into focus. There are elegant solutions available here but will either the Federal government or Wall Street be up to the challenge.
The holiday shortened Christmas week was also the last full week of the year for the BDC sector. We recap where prices went in the few days the market was open and look back over the year as a whole. Yes, 2019 was a very good year overall for the BDC sector, but there’s more than that to consider, and we do.
The late-in-the-year BDC sector rally continues judging by most of the numbers, but the BDC Reporter remains skeptical of investor enthusiasm. Unavoidably with only two weeks to go, we begin to look ahead to price, dividend and leverage levels in the year ahead.
BDC sector prices break a 2019 record on the way up. We wonder, though, where’s the usual enthusiasm associated with stock rallies, which is not showing up in much of the data. What’s more, how do high prices mesh with growing credit concerns at borrowers ?
We are back with the common stocks market recap just as the BDC sector ends November on a high note. Is BDC market enthusiasm justified by the recent fundamentals ?
There was a paucity of news affecting the BDC sector in the week ended September but developments out of the SEC could change price dynamics.
The BDC sector moved upward on the week, following the major indices renewed optimism. The BDC Reporter, though, shares its concerns about what might happen in the remainder of 2019 and into 2020.
The BDC Fixed Income market zigged as the risk free rate zagged; a Term Preferred was redeemed and we discuss who will be next and how all that capital going out the door might return later.
The broad market indices bobbed around in the week and the BDC sector followed suit. We discuss two BDCs that did well, and four that did not and project out how the rest of the year is likely to play out.
Over recent weeks, the BDC sector has been headed nowhere. The BDC Reporter, though, reminds readers why eternal vigilance is necessary, drawing from a decade of experience, and what cause cause a market moving change to occur.