This is nominally an article about an underperforming Great Elm portfolio company, but mostly a dissertation on how BDC credit defaults might divide into three distinct waves in the months ahead. Here we mostly review the “second wave” but keep an eye out for what might be following behind.
The BDC Reporter will be a featured speaker on a panel when the Active Investment Company Alliance reviews IQ 2020 BDC earnings results on Thursday at 2:00 p.m EST. We provide all the details for this free event and a link to the registration form for anyone interested.
We re-publish an article from the BDC Credit Reporter about an Ares Capital company that has just filed Chapter 11. However, we also use the opportunity to review BDC exposure to the energy sector in 2020. The numbers may surprise some readers.
Another BDC-portfolio company inches closer to default. We use the opportunity for a broader discussion about sector-wide credit risks going forward and why we’re skeptical that the Fed – successful intervening elsewhere – will succeed to help the thousands of non-investment grade companies getting into credit trouble.
The BDC Reporter digs into Medley Capital’s latest results to analyze earnings and asset value at a time when the BDC is once again on the auction block.
A leading bakery supplies company is in deep financial trouble and four BDCs are at risk of facing a default on their debt.
The BDC Fixed Income sector was not to be left out of the general price reflation that occurred across all markets in the week ended June 5. Is the market about to “get back to normal” ? We consider the evidence and note a major omission.
BDC common stocks prices are (almost) universally on an upward tear for a third week, and we’ve got the supporting data. Nonetheless, there’s a confusing mismatch between the mood and the fundamentals which leaves the BDC Reporter puzzled.
A compendium of BDC-related credit developments for June 4, 2020. No huge headlines but there’s news out of two famous bankruptcies in which BDCs remain involved.
Capital Southwest was very informative on its IQ 2020 conference call. As a result, the BDC Reporter has copious comments and analysis to offer up as well.
A compendium of BDC-related credit developments for June 3, 2020. Two more BDC-financed companies file for bankruptcy protection this month, bringing total to 3.
The BDC Reporter republishes and comments about a portfolio company of FS-KKR Capital that has just been downgraded by S&P.
A compendium of BDC-related credit developments for June 2, 2020. Includes the results from our credit review of Capital Southwest, following the BDC’s IQ 2020 earnings release.
Oxford Square Capital reduces its dividend and investors cheer, pushing the price up. Our analysis indicates why that might be the case.
A compendium of BDC-related credit developments for June 1, 2020.
The BDC Reporter annotates a new article from the Wall Street Journal about developments in the BDC sector.
BDC Fixed Income prices race up, ever closer to “normal”, leaving only a handful of debt issues in the basement. Even there, there’s an upward tilt, which we discuss.
For a second week BDC common stock prices rally along with the broader indices. However, there’s a very long way for prices to go before returning to pre-Covid levels and multiple challenges ahead.
Bain Capital’s BDC – already close to funding a Rights Offering – is raising new unsecured debt capital at an unusually high interest rate. We review the few facts available and seek to interpret what this might mean for the BDC’s liquidity and outlook.
Harvest Capital and its secured lenders come to an agreement that will require the BDC to repay its outstandings in the months ahead. We review the details of the agreement and the likely impact on the BDC, both in the short and long term.