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.
We are using the announcement of a new Gladstone Investment transaction to delve into the different strategic approaches being employed by BDCs in the lower middle market, and how that’s paid off for shareholders over the long term.
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.
Re-published from the BDC Credit Reporter is a IQ 2023 credit review for the largest BDC out there – Ares Capital. The data and commentary are almost completely drawn from the BDC itself and is part of a series Credit Reporter is undertaking.
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.
Sixth Street Specialty raises new equity capital. We review the numbers and the likely impact on the BDC. We also place this development in a broader BDC context and what it might mean for the future of the sector.
Smack in the middle of earnings season, Oxford Square has announced a rights offering. As we discuss, this seems like an essential move to shore up the BDC’s much deteriorated capital base but also raises important questions that shareholders will grapple with in the weeks ahead as final details are announced.