A first look at the first BDC to report earnings in the second quarter earnings cycle: Oxford Square Capital.
Median BDC Fixed Income prices are at a post-Covid high but at least five issuers and eight issues are questionable on the edge of earnings season. None of the weaker BDC bond issuers are reporting next week, but seven others are, including two whose outlook remains questionable.
The last week before BDC earnings season begins saw prices settling down as investors have largely positioned themselves. We discuss what’s been happening to the prices of some famous BDC names and take a brief look at the eight BDCs that will be announcing results. We’re not making any predictions because there’s so much we don’t know after the most difficult quarter for leveraged lending in a decade.
We introduce a new regular feature: a comprehensive review of every BDC development during the week just ended, each annotated by the BDC Reporter.
We preview Oxford Square Capital’s IIQ 2020 credit status by use of the BDC Credit Reporter’s database of underperforming portfolio companies. We also publish the database itself for readers to delve into as they see fit.
A famous milk producer is being acquired out of bankruptcy by a group that includes two existing BDC lenders: FS KKR Capital and FS KKR Capital II. We explain why this is important for the BDCs shareholders involved and for BDC investors generally.
We use the closing of THL Credit’s modified” Dutch Auction” to review where the BDC seems to stand where liquidity, earnings, dividend and credit quality are concerned.
An oil services company financed by three public BDCs unexpectedly files Chapter 11. We re-publish an article from the BDC Reporter and review which BDCs are involved and for how much.
The median price of BDC Fixed Income debt may be trading narrowly, but the week saw a big move up for one under-lowed BDC with two issues outstanding. The BDC Reporter also looks towards earnings season and spells out the shake, rattle and roll that might be in store for debt investors.
Individual stock price volatility continues to be high in the BDC common stock sector. Several BDCs offered up partial updates and with varying impact. We look ahead to what the BDC Reporter is billing as the most important earnings season in memory.
Owl Rock Capital prices a new unsecured note offering. The BDC Reporter closes the circle with a follow-up article about the debt raise to accompany what we wrote July 13. However, there’s an unexpected development: the proposed use of the funds.
One of Ares Capital’s largest portfolio companies has been downgraded by the BDC Credit Reporter following a worrying report by Moody’s. Given the size of the investment and the large amount of income at risk, we’re republishing the article by BDC Credit Reporter.
Oaktree Strategic Income arrives at a temporary understanding with one of its secured lenders. The BDC Reporter, though, details what could go wrong and what the fallout might be if things don’t go as planned for the BDC.
Golub Capital releases some preliminary IIQ 2020 results. The BDC Reporter compares these numbers against the BDC’s prior performance. We also seek to suss out what the outlook might be for Golub’s future earnings and dividend.
A new non-traded BDC is being launched by Barings, which already manages publicly traded Barings BDC. We review the key details and what the implications might be for the public shareholders and for the sector more generally.
Owl Rock Capital previews some key IIQ 2020 metrics, but leaves plenty unsaid. The BDC Reporter analyzes what we’ve learned and highlights what we don’t know.
Owl Rock Capital is preparing to pitch a new unsecured debt offering, according to a filing. The BDC Reporter reviews the BDC’s current debt level and liquidity and guesses what the amount to be raised and pricing might look like. Finally, we place this putative issue in the broader context of BDC access to the debt markets in the post-Covid period.
Where BDC common stock prices have been moving down, BDC Fixed Income has been moving up. There are several important exceptions to the rule, discussed by the BDC Reporter. Nonetheless, the future’s looking brighter for BDC Fixed Income, based on developments in recent weeks.
The downward direction of BDC sector prices – after a brief rebound – continued in the week. We discuss why that might be happening and what to expect as BDC earnings season gets ever closer.
A brief follow-up on the BDC Reporter’s prior article about Ares Capital’s newest unsecured debt raise. We discuss the maturity and pricing of the debt and what those tell us about Ares and the BDC market.