This was a hard week to be a BDC common stock investor.
After several weeks of ups and downs in a narrow range, BDC prices mostly moved clearly to the downside.
We’ll start as we most always do with the UBS Exchange Traded Note with the ticker BDCS, which fell to $20.361 from $20.72 the week before, a (1.7% drop).
BDCS was at $20.90 a fortnight ago, so the two week decline is (2.6%).
Likewise, the Wells Fargo BDC Index dropped (1.4%) in a week and (2.4%) over two weeks.
Topics: Loans, Middle Market, Analytics, market analytics, business development company, Fixed Income, News, bdc reporter
With September’s marquee M&A transactions put away, opportunistic activity ramped up further last week in both loans and bonds. The shift in technicals stemming from the lack of a formidable M&A calendar was particularly tangible in the loan market, as heavy investor demand raised the prospect for tight prints and aggressive documentation. Repricings, extensions and dividend recapitalizations were all in the mix, with arrangers using these transactions as a vehicle to effect other issuer-friendly revisions, including covenant stripping.
Topics: Loans, Middle Market, Analytics, BDC, market analytics, business development company, Fixed Income, portfolio, LevFin Insights, News
The BDC sector’s upward trend stalled again this week.
The Wells Fargo BDC Index dropped (1.3%).
Likewise, BDCS – the UBS Exchange Traded Note – saw its stock price drop (0.9%) to $20.72.
That’s the lowest level for BDCS in 5 weeks.
Topics: Loans, Middle Market, Analytics, BDC, market analytics, business development company, Losers, Fixed Income, News, bdc reporter
The leveraged loan market last week continued to build on trends that became evident two weeks prior, with more issuers winning aggressive terms and pricing, and an environment firming for the renewal of opportunistic business.
Significantly, while last week’s gross launched volume was roughly in line with the prior week’s tally, at $11 billion, opportunistic volume accounted for $4.3 billion, all of it involving repricing. Moreover, net launched volume ebbed to just $4 billion, exacerbating fears that accounts won’t have much new paper in which to invest after the big September rush slows.
Topics: Analytics, market analytics, Fixed Income, LevFin Insights, News
BDC Fixed Income – which most of the time is as exciting as watching paint dry – is in the midst of a dramatic period of change.
First of all – and the primary focus of our weekly Market Recaps – the prices of existing issues are dropping.
We noted as much last week, and the phenomenon continued this week.
The median price of the now 38 different public BDC issues we track dropped to $25.21, from $25.29 and $25.35 two weeks before.
Topics: Loans, Middle Market, Analytics, BDC, market analytics, business development company, Fixed Income, News, bdc reporter
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