In an expected but still major development, Corporate Capital Trust merges into FS Investment and the second largest public BDC is about to be born. We discuss the terms, the uncertainties and the investing opportunity involved.
The famously stable BDC Fixed Income market seems a little anemic. However, that’s nothing compared to what may happen as BDCs position themselves around the Small Business Credit Availability Act.
The BDC sector has a very good week almost across the board, despite few developments as investors jockey for position before earnings season. We discuss at length one factor that could prolong the rally and briefly (teasingly ?) mention another.
Goldman Sachs BDC shareholders fail to play ball for a second time. We discuss the pros and cons of issuing shares below book and project what might happen next. We also discuss the touchy subject of compensation…
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 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.
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.