Price changes in the BDC Fixed Income sector were consistent with expectations and prior periods. However, there was one unexpected development at the end of the week that might portend a major change in the size of the BDC publicly traded unsecured debt sector.
On one hand, BDC index prices moved up again. On the other hand, other data we use to measure investor enthusiasm for the BDC sector was unmoved. We seek to reconcile this contradictory picture, while looking forward.
The BDC Reporter continues its series on the status of BDC adoption of the SBCAA and the impact on risk and return. We look at Carlyle’s TCG BDC.
Saratoga Investment has a mostly uneventful quarter. Nonetheless, the BDC reporter finds much to review in the Conference Call transcript.
A BDC portfolio company receives an injection of new capital, which should accelerate growth plans.
A major risks solutions company, to which 5 different BDCS have nearly $100mn of exposure to, has been acquired. We review impact on the BDCs involved.
Gladstone Investment announces another special payout to shareholders. The BDC Reporter takes the opportunity to review the overall dividend outlook for the next 12 months and comes up with a re-rating.
FS-KKR Capital issues $400mn of unsecured debt to pay off an equal amount on the books. However, this is not just an equal swap and there is much to consider about the shape and cost of the BDC’s liabilities in the quarters ahead.
There may have been a sea change in the direction of rates late in the week, but BDC Fixed Income prices did not follow in the holiday shortened week. Otherwise, the only news worth discussing came out of Medley Capital. However, another BDC might be about to launch a new unsecured debt issue…
Notwithstanding a quiet, holiday shortened week, BDC common stock prices reached a new 2019 milestone.
Hot off the digital press: a new twist in the Medley saga that will be of interest to both debt and stockholders: Medley Capital has made an offer to its Israeli unsecured debt holders that they might find hard to refuse.
Investcorp has arranged to acquire the investment advisor of under-performing CM Finance. We review how the transaction is structured and what the impact might be on the shareholders of this lower middle market focused BDC.
The BDC Fixed Income sector continues to trade at record high levels, but there are two exceptions which bear watching, and which could yet give the segment a black eye.
A mid-summer doldrums week for the BDC sector as a group, but a big development at a smaller sized BDC keeps things interesting.
OFS Capital – in a BDC first – establishes a wholly owned subsidiary just to acquire senior loans. We discuss what we now know, what we don’t and why that matters.
The BDC Reporter amends its 12 month Dividend Outlook for Goldman Sachs BDC after reviewing the IQ 2019 results.
Record low interest rates – and the promise of more to come – boosted up BDC Fixed Income prices. With a couple of exceptions…We also review the latest Baby Bond and speculate about what comes next.
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.