Think

Range Bound

We’re committed to writing a weekly assessment of where the BDC common market stands because a lot can happen in a short time.

Miss the signals of a change in market direction and investors can fall behind/miss out in just a few days and not have another opportunity for months or even years.

We don’t have to look far back in time for a helpful example.

Between December 24, 2018 and January 10, 2019 BDCS – our proxy for the sector – moved up more than 10%.

That’s a whole year of dividend income in 12 business days.

All Together Now

The week was not a good one for the major indices, all of which were down in the period. The BDC sector was not spared, with both indicators we use for price and total return in the red.

The UBS Exchange Traded Note, which includes most every public BDC – with the ticker BDCS – was off (0.25%). Likewise, the all-inclusive Wells Fargo BDC Index was down by (0.74%).

Thirty one individual BDC issues dropped in price, and just fourteen were unchanged or increased. The week before 28 issues had increased in price and 37 the week before that.