A mixed week in the BDC sector but the trend is still to the upside. The BDC Reporter also discusses the monumental changes underway amongst the bigger BDCs and what that might mean for the future.
We put our BDC Credit Reporter hat on to preview the credit picture for the 50 companies in Gladstone Capital’s portfolio, with second quarter results shortly to be released.
Golub Capital continues to rework its borrowings. The BDC Reporter provides an update and discusses the broader picture of BDC liability management – and what that might mean for shareholder risk and return – in a new age.
In an expected but still major development, Corporate Capital Trust merges into FS Investment and the second largest public BDC is about to be born. We discuss the terms, the uncertainties and the investing opportunity involved.
The famously stable BDC Fixed Income market seems a little anemic. However, that’s nothing compared to what may happen as BDCs position themselves around the Small Business Credit Availability Act.
The BDC sector has a very good week almost across the board, despite few developments as investors jockey for position before earnings season. We discuss at length one factor that could prolong the rally and briefly (teasingly ?) mention another.
Why we invested in Capitala Finance as part of our Special Situations strategy.
Goldman Sachs BDC shareholders fail to play ball for a second time. We discuss the pros and cons of issuing shares below book and project what might happen next. We also discuss the touchy subject of compensation…
WhiteHorse Finance begins the journey towards higher leverage with a new institutionally placed unsecured note. The BDC Reporter spells out what might happen in near to medium term to earnings, risk and management compensation.
The BDC Reporter begins by reviewing a tiny unsecured debt offering by Prospect Capital, which segues into a much wider review of the BDC’s liability management and the hidden risks that both debt holders and common shareholders face.
The BDC Reporter is optimistic about Stellus Capital’s credit quality but will the distribution be raised ?
The BDC Fixed Income market was softer on the week, but that may be a short term phenomenon. More importantly, a BDC raised new unsecured debt in a manner that may be very instructive for the future of the sector.
The BDC mini rally hangs in there for another week. We discuss who was up and who was down and the lessons learned. Plus, we provide our best guess as to the short term outlook.
Our view following Saratoga Investment’s secondary stock offering.
Garrison Capital seeks shareholder approval to leverage up an already highly leveraged balance sheet. We review the arguments for and against and offer up our own clear succinct conclusion.
An MVC insider buys shares. The stock price increases. We discuss what’s going on at MVC Capital and what might be coming up.
Golub Capital reports that its Joint Venture shrunk in size. Again. We review the numbers; the possible impact on earnings and speculate as to why.
Golub Capital is redeeming one of its two on balance sheet CLOs. We discuss why and the possible impact on the BDC’s liability management and its earnings.
MVC Capital sells a portfolio company. The debate continues as to whether the BDC can close the gap between its book value and stock price.
A bounce back in BDC Fixed Income prices during a short week. Otherwise, we learn what we can from Prospect Capital’s latest debt offerings and review likely early debt redemptions. (This is the full version of the article. An earlier version was truncated by pixies for reasons unknown).