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Q2 2018 BDC Non-Accruals: Medley Capital Corp No Longer Worst Performer

Posted by David Diggins on Aug 15, 2018 5:24:17 PM

Last month we shared a list of the top 10 BDC non-accruals based on first quarter 2018 SEC filings. Now that we are mid-way through August and second quarter filings are readily available, let’s take a fresh look at the first quarter’s worst performer.

Business development companies are primarily debt investors, meaning that they're buying the debt in private companies. If that debt isn't performing or they don't expect to be paid, they'll put it on what's called non-accrual.

Our #1 non-accrual in Q1 was Medley Capital Corp. After second quarter filings, Medley drops to our #2 slot. Medley has fewer non-performing investments this quarter: 14 verses 17 from last quarter. A jostling of investments is a likely contributor to its slightly lower non-accrual ratio of 9.96%.

Medley Capital Corp

This Quarters top non-accrual didn’t even crack the top 10 in first filing of 2018. And with an 11.33% portfolio non-accrual, it beats out Medley Capital Corp. for the top spot by 1.37%. Want to know who took the top (or bottom) spot? Download our list of Top 10 Q2 2018 BDC Non-Accruals!

Download the PDF

Accrual ratios are potential indicators that the credit market may be turning, and that a possible recession is on the horizon. Monitoring BDC accrual ratios can help restructuring and turnaround source new business.

With one of the largest searchable databases of leveraged loans, middle market loans and corporate bonds in the world, AdvantageData (ADI) is a powerful business intelligence and prospecting tool for the credit space. Restructuring advisors and distressed debt specialists across the globe use ADI’s platform to quickly screen for pricing, leverage, and other lender data for Middle Market companies.

BDC Middle-Market Loan Advantage, part of the AdvantageData workstation, provides access to every public and private BDC filing aggregated and standardized from the year 2000 through today. What historically took firms days to complete can now be done with a few mouse clicks. Access reference data and pricing across $80 billion or 8,000 middle market investments all within 8 hours of SEC filing. 

 

Topics: News, download, portfolio, fair value, Fixed Income, Default Rate, BDC Filings, Loan Default Rate, Second Lien, Restructuring, Non-accruals, Distressed Debt, First Lien, BDC


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