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Fed announces fourth rate hike of 2018, markets react

Posted by David Diggins on Dec 20, 2018 12:21:11 PM


On Monday, President Trump criticized the Fed for even considering raising rates, yet on Wednesday the Federal Open Market Committee announced its decision to raise the Fed Funds rate ¼ of a percent from 2.25% to 2.5% -- the fourth such increase in 2018.

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Topics: News, Fixed Income, Equity, Finance, New Issues, bonds, junk bonds, market analytics, Analytics, High Yield

North American Market Summary: High Yield Bond Research, December 17, 2018

Posted by Corey Mahoney on Dec 18, 2018 3:04:38 PM

U.S. TREASURY YIELDS SLID ON MONDAY APPROACHING three-month lows as investors fled to safe-haven assets. The 10-year benchmark settled near 2.857% losing 3.6 basis points while the inverted 2-year and 5-year Treasury yield gap narrowed to .3 basis points.
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Topics: News, Finance, bond market, market analytics, High Yield, research

BDC Preview: Week Of December 17 – December 21, 2018

Posted by Nicholas Marshi, BDC Reporter on Dec 17, 2018 11:23:32 AM

Focus:  This week – as in all recent weeks – the focus of most market participants will be on the gyrations of the markets. The week ended December 14, 2018 was not a pretty one for either BDC common stocks or Fixed Income, with both hitting new lows as we expounded on at length in our stock and debt Market Recaps for the BDC Reporter’s now shell-shocked Premium subscribers. BDC common stocks are now in the red in 2018 on a total return basis and at multiple new record lows. The median BDC debt price is now under par – albeit by only $0.05 – for the first time.

Looking ahead for the week ended December 21 – and downward – the next major number to look out for is the price of the UBS Exchange Traded Note with the ticker BDCS – which we use as a quick sector proxy – and which closed Friday December 14 at $18.67. The all-time low for BDCS is $17.31, set in February 2016 following a similar market meltdown. The very fact that the BDCS price would have to drop as much as 7.3% to match that nadir speaks to how relatively well the sector has held up in the current environment – the 10%+ drop from the August 30 2018 BDCS high notwithstanding. However, that sort of implosion would not be uncharacteristic for this highly volatile sector.

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Topics: bdc reporter, News, Fixed Income, Finance, business development company, BDC

BDC Preview: Week Of December 10 – December 14, 2018

Posted by Nicholas Marshi, BDC Reporter on Dec 10, 2018 8:51:30 AM

Inescapable: We’re going to assume the ups and downs of the major indices – and the corresponding movement in BDC common stock prices – will continue until it doesn’t. Since late August, the turmoil across all asset classes has caused the playbook of BDC fundamentals to be thrown out the window as new low after new low is reached, with a few head fakes along the way. As we write this the Dow Jones index is trading 200 points down in the Monday pre-market, which only means that more of the same is on the cards.  Admittedly, this past week, the BDC sector fared less poorly than the 3 major indices (Dow Jones, NASDAQ and S&P 500), but that could reverse itself this week, whether the broader markets go up or down. All we are sure of is that the BDC sector cannot disentangle itself from whatever direction the markets are headed. Here is the chart showing the price of the UBS Exchange Traded Note with the ticker BDCS – which includes most every BDC player – since August 30, 2018, roughly when the market dramas began, compared to the main indices.

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Topics: bdc reporter, News, Fixed Income, Finance, business development company, market analytics, Middle Market, BDC

One Step Ahead: Identifying Distress In The Middle Market

Posted by Alex Buzby on Nov 28, 2018 11:31:34 AM

Analyzing PIK and Coupon Spread changes can be a great way to identify middle market companies that are beginning to feel pressure from lenders.  Whether you're sourcing investments, consulting distressed borrowers or analyzing BDCs, utilizing alternative signs of distress as leading indicators is a great way to get ahead of the market - Download the data sample below!

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Topics: download, Fixed Income, Restructuring, Finance, Distressed Debt, Distress, business development company, debt, First Lien, Spreads, Middle Market, Distressed Investments, BDC


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