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2019 BDC Preview: Misery in the Forecast? - PDF Download

Complete the form to the right to download the full 2019 BDC Preview: Misery in the Forecast? PDF report.

BDC equity took a beating in line with US equities, but unlike liquid credit markets, the extent of the pain may not yet be clear for BDCs. Given most BDCs won’t file earnings until February, the true extent of the damage is still unknown. The best way to gauge the impact of the market stress on BDCs before they report it themselves is to aggregate data from a number or sources and analyze from various different angles. This initial analysis starts with the following four approaches:

  1. Performance of the liquid portion of BDC portfolios in Q4 2018
  2. Historical analysis of past selloffs and subsequent BDC asset markdowns
  3. Gauging the increased impact to subordinated investments
  4. Review of sector-specific loan markdowns

Download the full PDF to read more about each of these four approaches and what they tell us about the BDC sector in 2019.