Three weeks into the crisis brought on by Silicon Valley Bank, we review where BDC prices are headed and what could happen under two very different scenarios. This is a time to be very careful.
We kick off the week of March 20-24 with a BDC Credit Reporter article about a likely credit loss that affects 7 BDCs.
Ironically, as the banking world thrashed around all week – with concerns about bank failures – there was only a modest amount of credit news – some of which was even positive.
A week after the failure of the Silicon Valley Bank, the crisis continues in a different way. However, BDC investors seem to be watching and waiting going by the week’s metrics.
March 16, 2023 Update: Just added a review of CION Investment’s IVQ 2022 results.
Trinity Capital announces one quarterly dividend but omits another shareholders were getting used to. We discuss what investors might expect in the rest of the year.
An asset-based lending subsidiary of Hercules Capital is expanding. The BDC Reporter analyzes the move and how the investment has performed over the last 5 years.
At the close on March 13, 2023 5 BDCs reached new 52-week highs. We discuss why we believe this is “Breaking News” for BDC investors.
Not very surprisingly Sixth Street Specialty claims no material exposure to you-know-who. More intriguing is their discussion of leverage and liquidity which raises sector-wide issues.
Hercules Capital wants its stakeholders to know that the BDC is financially strong, liquid and had no banking relationship with Silicon Valley Bank. As we discuss, this might be a golden opportunity for the BDC, but it might not – depending on the wider fall-out from this crisis.
Runway Growth Finance is the first BDC out of the blocks to comment on the situation following Silicon Valley Bank’s sudden demise.
In a dramatic week thanks to the sudden failure of Silicon Valley Bank, actual credit developments amongst troubled BDC-financed companies were normal. Still, credit matters might be about to change…
This was the week that changed everything for the BDC sector judging by what happened to market prices. We place the big price drop in a longer term context and discuss what the future could bring.
After years of not holding an investor call, PhenixFin opted to do so on March 8th. We highlight the main points made and tell you what we’ve learned and what not.
The Fed talks about higher rates for longer – again. All the markets take a dip. This includes the BDC sector – one of the biggest potential beneficiaries. We explain why.
BDC earnings season might be coming to a close, but there should be plenty of new developments to keep the BDC News Feed populated.
Goldman Sachs BDC has surprised us a little and announced a secondary stock offering. We review the background and the numbers while awaiting the final price.
Both anecdotal stories and aggregated bankruptcy data by us and others continues to indicate a credit deterioration is underway. Is it yet time to panic ? We address the question in our latest weekly credit recap.
In a rare occurrence of late, a public BDC has raised unsecured debt. Even more interestingly, the financing is not a standard 5 year, fixed rate instrument. We discuss the implications for both the BDC involved and for the sector.
This was a very busy week for the BDC News Feed, so much so that we’re still circling back and providing analysis and commentary about the week’s developments.