A BDC winning streak comes to an end this week, but the market remains buoyant nine months into the year. Little in the way of major developments to report, but credit continues to be a source of concern “maybe not today, maybe not tomorrow, but soon”.
BDC Fixed Income prices continue to enjoy an Indian Summer price-wise, but there are very few news developments to discuss. Prices are not expected to change much in the near future but the news flow should.
In a week where BDC stocks moved up to break new 2019 records – which we discuss at length – the BDC Reporter looks down the road at the growing and changing nature of the sector.
BlackRock TCP Capital has been growing very fast of late but the second quarter 2019 results were a mixture of positive and negative metrics; reflecting the market’s ambivalent attitude to this larger BDC.
The BDC Reporter returns from listening to a top notch economist with lots of notes, and thoughts about the implications for the BDC sector. Not our usual sort of article but touching on some big issues most readers are interested in.
The last BDC to report IIQ 2019 results is the newly renamed Investcorp Credit Management BDC. We review all the key results, the outlook and the stock price to assess how the quarter went.
The BDC Reporter republishes and annotates an important article by S&P Global Market Intelligence regarding weakening metrics of leveraged borrowers. We seek to add a BDC perspective and share some of our proprietary research on credit trends.
This week, interest rates changed course, affecting pricing in the BDC Fixed Income sector, but not too much yet. Otherwise, there were no other developments this week but that could change in the rest of 2019 and – possibly – provide insights into what the future of the BDC Fixed Income segment might look like.
In the span of a few weeks, BDC sector prices have gone from sleepy to rally. We discuss the possible reasons why and offer our own view as to whether this is merited based on the BDC Reporter’s proprietary research.
Following Investcorp Credit Management’s (formerly CM Finance) latest results, the BDC Reporter has new doubts about the sustainability of the current dividend. We explain why and offer up the BDC’s counter-arguments drawn from the Conference Call.
Ares Capital is raising unsecured debt again, according to a draft Prospectus. We review the details; discuss the mix of secured and unsecured borrowings on the balance sheet and speculate how this development fits into the BDC’s plans for ambitious balance sheet expansion.
The BDC Fixed Income prices moved upward in the week, but there are still a couple of sore spots, which we discuss. Also, a BDC gets an investment grade nod and the BDC Reporter discusses what the rest of the year might look like in pricing terms.
There was a paucity of news affecting the BDC sector in the week ended September but developments out of the SEC could change price dynamics.
By our count, 21 of the 45 public BDCs that have reported results in the IIQ 2019 performed well. Capital Southwest falls into that category, but we provide a balanced picture.
Oaktree Specialty Lending – which recently lost its CEO – had a mixture of positive and negative results in the second quarter 2019, and much remains to be done two years after the new manager took over.
In the second quarter of 2019 Goldman Sachs BDC performed relatively poorly as recurring earnings and book value both dropped, as did analyst future expectations.
As the risk free yield continues to drop, BDC Fixed Income prices moved up, but only slightly. We also discuss the latest unsung development over at Medley Management and predict what the rest of 2019 might bring in term of prices and new activity.