Not much to report from a big picture standpoint where BDC common stocks or Baby Bonds are concerned. However, the BDC Reporter notes some individual price changes worth keeping track of.
The BDC Reporter first noted that a change in the Board at Medallion Financial had occurred, which was intriguing. We’ve since updated the post with news of the just filed stock ownership by the new Board member. Is something happening here ?
The BDC Reporter continues its weekly diary of what is happening to BDC common stock and Baby Bond prices and trends. The former is kept on its toes by a few surprise news items in an otherwise highly stable market. The latter is barely moving at all – whether up or down – but we speculate as to how many securities might get called sooner rather than later.
The BDC Reporter takes a “deep dive” into Fifth Street Finance’s financial performance and outlook to determine if the recent run-up in the stock price on the back of Oaktree Capital’s impending arrival as Investment Advisor is justified by the fundamentals.
BDC News Of The Day breaks with its regular procedures and provides details about two upcoming earnings releases: Fifth Street Finance and Fifth Street Senior Floating Rate. We explain why investors may want to mark the event in their calendars.
BDC Exposure: $37mn.
Fifth Street Finance and Fifth Street Senior Floating Rate have both received waivers and amendments from their lenders as part of the transition to a new Investment Advisor and a revised strategy and business model under Oaktree Capital. We discuss the details and discuss how to invest in this fast evolving situation.
The BDC Reporter is skeptical that the increase in Fifth Street Senior Floating Rate’s stock price is sustainable, despite a big run-up in recent days and an apparent long way to go before getting back to book. We give 5 reasons why we doubt that the BDC’s stock price can remain at the current level for too much longer.
Shortly after agreeing on a sale of its management contracts to Oaktree Capital, Fifth Street Asset Management has caused Fifth Street Senior Floating to issue a preliminary Proxy to get shareholder approval. The BDC News Of The Day has read the Proxy and brings readers the key details (including a few new facts not previously disclosed) and analyzes – where possible – what the impact might be on the BDC going forward. However, much remains unknown and unknowable…
The BDC Reporter recaps what’s been happening to BDC common stocks in the week, mentioning two obvious names and one which is not. We also review the latest trends in BDC Baby Bonds and offer up a (downbeat) projection for what might happen to prices for the next many months. We end by tying together what these two markets are telling us about investors sentiment right now.
Finally. Fifth Street Asset Management has sold off its Investment Advisory contracts in Fifth Street Finance and Fifth Street Senior Floating to Oaktree Capital. We review the press release and SEC disclosure; point out what’s good and what might not be so good for the shareholders of the two BDCs involved and disclose our own investment approach following the Big Reveal.