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As so often happens of late, the major indices and the BDC sector moved in different price directions this week. We discuss which BDCs were the most affected. We also take a clear-eyed view at where the BDC sector stands on the eve of short term rates being reduced again. There are numerous scenarios that could play out beyond a (0.25%) Fed rate cut and we discuss many of them.

The BDC sector moved down in price this weeks, as two of the major indices moved higher. Price-wise, though, both the sector and most of the BDCs we track remain in a narrow price channel that even lower interest rates in mid-September might not change. However, we have taken a longer term view and assessed what the impact might be on BDC prices up to 2027 if the market consensus for short term rates plays out. You might be surprised by our conclusion.

For a change, the BDC sector out-performed the major indices price-wise. In the Recap, we discuss the week’s major price winners and the principal news items of interest. We take a snapshot of where the sector stands with 8 months in the rear view mirror and consider what the last 4 months of the year might hold. We close with an optimistic scenario – one amongst many that could play out this year.

Hot off the presses! Prospect Capital has ended the second quarter of BDC earnings season by reporting its quarterly and full year results through June. Seeking Alpha noted that earnings didn’t drop as much as expected. However, we are focused on another metric which – once again – has moved by a record breaking percentage.

This was another quiet week for the BDC sector with little in the way of news, or price moves. We discuss the current state of limbo where BDC prices are concerned and spend an inordinate amount of time assessing how prospective changes in interest rates might help or hurt BDC performance. We even offer up our prediction for what the Fed might do rate-wise between now and mid 2026. Everybody else is. Looking into the BDC sector’s future, though, we see a myriad of ways things could go but don’t expect any clarity for some time yet. From a macro standpoint, this is the most uncertain stretch we’ve known since Covid happened.

Not satisfied with acquiring the assets and shareholders of Logan Ridge Finance, Portman Ridge Finance – as long announced – is changing its name and ticker symbol.

We’re not convinced that newly public MSC Income Fund – and its external manager, an affiliate of Main Street Capital – have made the right strategic decision where portfolio construction is concerned. Here’s our unvarnished view.

All but one BDC has reported IIQ 2025 results but investors remained dour for a fourth week in a row even as the major indices moved higher. We review the week’s biggest price winner and loser, and the 4 new price lows. We then turn to where the BDC sector stands after 33 weeks of 2025 and speculate as to how the year might end for both BDC prices and performance.

Monroe Capital has reported its quarterly results – possibly for the last time. Unfortunately, there’s little to cheer in this last hurrah and the BDC Reporter is left puzzled about what is going on.

Price-wise, the BDC sector barely moved this week after a big drop the week before. However, there is a great deal going on beneath the surface, including an unexpected change in direction at two Monroe Capital managed BDCs and a host of IIQ 2025 earnings releases. We do point out who are the walking wounded BDC players but close with a mostly bullish assessment of sector performance and of the future outlook for prices.

The skies over all markets suddenly darkened this week, and the BDC sector was not exempt. After many weeks of increasing optimism, BDC investors are back to the dark forebodings of April, when we first heard about “Liberation Day”. This might be a turning point in the year, but maybe not. We discuss three potential alternatives going forward after assessing how the BDC sector stands in the wake of this week’s red ink.

The major indices continue to climb but – this week – the BDC sector did not. Earnings season is coming up, and that may cause some changes. Maybe more importantly, a new risk to BDC prices is growing which could radically change everything.

The week ended July 18, 2025 was jam-packed with BDC news – unusual when no actual earnings were being reported. Of particular note: Trinity Capital’s “Green Light” from the SBA; Portman Ridge swallows up Logan Ridge and OFS Capital raises some – but not all – new debt needed needed to refinance an upcoming maturity and more besides.

In the twinkle of an eye – or at least two weeks – BDC prices have gone from stagnant to flying. We review the metrics and discuss various BDCs along the way. In our Looking Forward section we tackle a controversial subject: the outlook for BDC credit, which some pundits believe is headed to heck in a handbasket. We don’t agree.

Gladstone Investment has acquired a new portfolio company in an unusual industry and at a greater cost than on average.

Sixth Street Specialty reaches a new price high. The BDC Reporter is enjoying the irony of this development.

Logan Ridge Finance has left the public BDC stage.

OFS Capital (OFS) is seeking to prepay its $125mn unsecured note costing 4.75% early by – mostly issuing – a Baby Bond. Bottom Line: Expect earnings to drop sharply from the IIIQ 2025.

The major indices fell a little this week but BDC prices moved up, probably in anticipation of earnings season. After 28 weeks, the BDC sector is doing alright all considered. Earnings season – which is nearly here- could shake things up.