A wonderful week for the broad indices was not reflected in what happened to the BDC sector. We review the softness in BDC price trends despite 3 weeks of an up market and the possible reasons.
We review an under-performing company in FS-KKR Capital’s portfolio and segue into a broader discussion of portfolio credit risk at this very large BDC, partly managed by KKR.
With new information recently released by WhiteHorse Finance, we’ve updated the BDC’s Credit Outlook, initially published on May 23, 2019.
THL Credit joins the swollen ranks of BDCs who’ve adopted the new higher leverage limit while also becoming one of a much smaller group of BDCs to cut contractual compensation costs. Both developments require analysis and commentary.
The median BDC Fixed Income price drops slightly but investor enthusiasm remains high. We look forward to how Fed actions might affect prices in the very short term. Also, a new Baby Bond becomes the 43rd BDC public debt issued.
BDC sector prices outpace the major indices, now up for two weeks in a row. However, negative factors – including lower rates and credit problems – remain. Does the upsurge continue regardless ?
OFS Capital joins a select group of BDCs that have offered to reduce a portion of their compensation over a certain leverage level. The BDC Reporter looks the gift horse in the mouth…
The BDC Reporter rates MVC Capital’s credit trend and outlook following our review of the just published 10-Q.
A famous discount retailer gets restructured and three BDCs with more than $50mn of exposure are involved. We re-publish our post from the BDC Reporter and discuss both the credit issues and the valuations involved.
We re-publish an article from the BDC Credit Reporter, covering the Chapter 11 filing of one of Prospect Capital’s largest borrowers, which has been in trouble for several years. The BDC Credit Reporter believes a major loss will need to be recorded by PSEC.
Another solid week for BDC Fixed Income but change is afoot thanks to the shift in future interest rate expectations. We parse the possibilities for the BDC sector and its debt investors.
The BDC sector followed – at a distance – the move upward by the major indices. That’s all well and good, but there are a couple of dark clouds on the horizon which may rain on this parade in the near-future.
A new non-traded BDC is making the move to the public market: Owl Rock Capital. The BDC Reporter takes a first quick look at what might shortly become the fourth sixth BDC we track.
The BDC Reporter updates where Goldman Sachs BDC stands in its plan to take advantage of the Small Business Credit Availability Act, and compares against projected income and distribution in the years ahead. Second in a series about the risk-return involved in the new rules.
We annotate the press release by NexPoint Capital after losing a key shareholder vote at Medley Capital and list out the many uncertainties remaining before the fate of the BDC will be known.
Publicly traded Fusion Connect files for Chapter 11 after acquisitions go wrong. We discuss the impact on the two BDCs involved in the financing and what’s been happening to other bankrupt BDC portfolio companies.
As the risk-free rate drops to new lows, existing BDC debt holders are not benefiting. In fact, we worry about what the week ahead – if the current trends continue – might bring. We also update BDC Fixed Income news and the Fixed Income Table.
The BDC sector joined the broader market rout, ending the 5 month long BDC rally. Besides the battle over tariffs, there are other threats to the sector, as we discuss.
The BDC Reporter publishes its first SBCAA Status Report. We begin with Apollo Investment.
The impact of the Small Business Credit Availability Act is beginning to be felt in the BDC sector, as we illustrate from our research. Time for a new article series from the BDC Reporter.