Aimbridge LBO to take out unitranche debt held by Bain Capital Specialty Finance, Golub
Download: LFI BDC Portfolio News 1-14-19
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Topics: Analytics, BDC, market analytics, business development company, LevFin Insights, News
We’re back to writing a preview of the week ahead in the BDC sector after a two week holiday break when not much was happening except wild swings in BDC common stock and bond prices, neither of which do we pretend to have any definitive insights as to their short term behavior. With the new year, though, we’re eager to get back to penciling out what we might expect to be reading about in the days ahead, and what the BDC Reporter might need to tackle in greater depth. In our most recent BDC Common Stocks Market Recap we boldly stated to our Premium subscribers that 2019 promises to be “the most important for the BDC sector in the last 10 years”. Let’s see how that goes, starting right away.
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Topics: BDC, business development company, Fixed Income, News, bdc reporter
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: High Yield, Analytics, bonds, junk bonds, market analytics, New Issues, Finance, Equity, Fixed Income, News
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: High Yield, bond market, market analytics, Finance, News, research
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, business development company, Finance, Fixed Income, News, bdc reporter
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