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.

BDC earnings season kicked off with Saratoga Investment’s results, two BDCs continued to pay the same dividend as before and a venture-debt BDC gave us a preview of their recent activity, and much more.

The second half of the year began strongly for all the indices – and the BDC sector- in a holiday shortened week. There were only a couple of material news developments, which we covered. Looking forward, there’s still a bull case to be made, much of which depends on the Fed.

A busy-ish week for BDC news but only the developments out of Main Street and Prospect Capital merited in-depth exploration.