Top 5 Portfolio companies by Fair Value held by BDC’s account for 25 percent of aggregate BDC’s assets under management. Please click below to download List of Top 5 Portfolio Companies by Fair Value held by all BDCs.
Janus, Neustar adding more first-lien debt; PSEC, Triton Pacific hold respective companies’ second-lien credits
The secondary market commanded investors’ attention last week, what with earnings and other headline news sparking some big swings in widely held credits against the backdrop of a muted new-issue loan market and a high-yield secondary firm at three-month highs since the rebound rally in January.
Portfolio mainstays Confie Seguros, McAfee pursue lower margins through respective refinancing, repricing
The brief turn two weeks ago toward caution in the leveraged-loan market amid volatility in high-yield and equities has proved to be but a blip amid a sea of endless liquidity, and that sentiment was affirmed last week as loans ignored another selloff in shares. Indeed for loans, it was business as usual with a pronounced emphasis on opportunistic activity. Bonds, too, got back to business, spurred by Uber’s successful $2 billion private offering, with other issuers jumping into the market in the wake of that upsized transaction.
BDC Common Stocks
Singing The Blues
As the lesser know Sonny Curtis song goes “We fought the tape, and the tape won”. Last week (ended October 5) , the BDC Reporter injected a note of optimism after a bad week for the BDC sector in which the Wells Fargo BDC Index dropped (1.4%). However, we’re not yet convinced that this current malaise will last all that much longer, bringing down BDC prices to correction or bear market levels. We can’t speak to general market sentiment which – as they say – is “going to do what it’s going to do”.
We’ve not yet been proven absolutely wrong because BDCS – which has now dropped to $19.40 after disgorging a $0.41 distribution – is down (7.8%) from its high. If we adjust for the dividend the drop is “only” (5.8%) and the “Total Return” Wells Fargo BDC Index is off just (4.5%). We are some way off a a classic 10% correction or a 20% haircut bear market.
BDC Fixed Income
The week ended October 12 2018 was dismal for BDC common stock investors.
Readers may not need our BDC Common Stocks Market Recap – published simultaneously with this article – to be alerted to the fact.
However, BDC Fixed Income – after enduring it’s own mini-meltdown the week before – perked up modestly on the week.
Of the 39 BDC debt issues that are actively trading (out of 40 in the universe), the median price came to $25.18.
On October 5, 2018, that equivalent median price was $25.09.
Moreover, the number of debt issues trading below par – pushed there by higher rates – dropped to 11 from 13.
Still, there were no issues trading over $26.00 – until just recently a frequent occurrence.
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