WhiteHorse Finance begins the journey towards higher leverage with a new institutionally placed unsecured note. The BDC Reporter spells out what might happen in near to medium term to earnings, risk and management compensation.
The BDC Reporter begins by reviewing a tiny unsecured debt offering by Prospect Capital, which segues into a much wider review of the BDC’s liability management and the hidden risks that both debt holders and common shareholders face.
The BDC Reporter is optimistic about Stellus Capital’s credit quality but will the distribution be raised ?
The BDC Fixed Income market was softer on the week, but that may be a short term phenomenon. More importantly, a BDC raised new unsecured debt in a manner that may be very instructive for the future of the sector.
The BDC mini rally hangs in there for another week. We discuss who was up and who was down and the lessons learned. Plus, we provide our best guess as to the short term outlook.
Our view following Saratoga Investment’s secondary stock offering.
Garrison Capital seeks shareholder approval to leverage up an already highly leveraged balance sheet. We review the arguments for and against and offer up our own clear succinct conclusion.
An MVC insider buys shares. The stock price increases. We discuss what’s going on at MVC Capital and what might be coming up.
Golub Capital reports that its Joint Venture shrunk in size. Again. We review the numbers; the possible impact on earnings and speculate as to why.
Golub Capital is redeeming one of its two on balance sheet CLOs. We discuss why and the possible impact on the BDC’s liability management and its earnings.
MVC Capital sells a portfolio company. The debate continues as to whether the BDC can close the gap between its book value and stock price.
A bounce back in BDC Fixed Income prices during a short week. Otherwise, we learn what we can from Prospect Capital’s latest debt offerings and review likely early debt redemptions. (This is the full version of the article. An earlier version was truncated by pixies for reasons unknown).
A short, but positive week for BDC common stocks. Looking forward to earnings season, the BDC Reporter sees more daylight ahead.
Triangle Capital offers three clarifications on an earlier article about its Proxy. This leads to a constructive conversation about capital, fees, leverage and the future of a BDC about to undergo a metamorphosis.
S&P downgrades two BDCs and gets kicked to the curb. We revisit the changing risk profile of the BDC sector through the prism of yet another fund that has adopted the new higher leverage rules. Worrying but important reading.
American Capital Senior Floating’s shareholders say Yes to Liquidation. We update the timeline, proceeds and odds of everything going swimmingly.
BDC Fixed Income prices soften, but probably for a transient reason. More importantly, the “leveraging up” of the BDC Sector begins with two new issues and the dynamics of the industry begin to change. One of those Good News/Bad news stories.
Mixed messages about the short term direction of the BDC Sector. The BDC Reporter, though, quantifies how drastically the shape of the sector will change in the next 2 years and which could yet cause BDC prices to shift.
CM Finance issues its first Baby Bond in preparation for amping up portfolio size and leverage next year thanks to the Small Business Credit Availability Act. We delve into the economics both for CMFN and what this might mean for the sector as a whole. Warning: Many numbers ahead and an unsettling conclusion.
Nothing much happening in the foreground where BDC Fixed Income is concerned. In the background, though, the scene is being set for a huge expansion of the sector.