Concession Speech
We are prepared to concede that the once semi-robust BDC common stock rally is in stall mode.
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Topics: BDC, bond market, market analytics, business development company, Fixed Income, News
LBOS TO TAKE OUT RESTAURANT TECHNOLOGIES DEBT HELD BY ARCC, BAIN, AUDAX AND CSWC, ALONG WITH QUORUM SOFTWARE CREDIT HELD BY SUNS
Download: LFI BDC Portfolio News 9-17-18
The big three LBO deals that kicked off the post-Labor Day rush have all drawn significant oversubscription from loan investors, driven not only by strong market conditions but also nagging concerns among investors that volume will ease once the current calendar is put to bed. The solid response to these large transactions suggests that most of the deals in market will find firm footing and that arrangers will begin testing tighter pricing levels than the relatively conservative efforts represented by this first batch of September business.
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Topics: Middle Market, BDC, market analytics, business development company, LevFin Insights, News
Summary
A pull-back in the BDC sector in this holiday shortened week, and a couple of unexpected developments.
To the BDC Reporter, though, the outlook remains the same.
Back To Business
In the semi-official, Labor Day shortened, first week back after the summer holidays, the BDC sector dropped back a little.
The UBS Exchange Traded Note with the ticker BDCS – which we use to measure the whole group – was off 1.0% to end at $20.79.
Likewise, the Wells Fargo BDC Index was down 1.05%.
The number of BDC stocks up in price, or at least unchanged, numbered just 14, versus 27 last week.
No BDC common stock increased more than 3.0% in price on the week, but three dropped by 3.0% or greater.
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Topics: Middle Market, Analytics, BDC, business development company, Fixed Income, News
Download: LFI BDC Portfolio News 9-10-18
As promised, loan arrangers rolled out a big September calendar of M&A deals brimming with new money seeking to take advantage of the late-August lull and a favorable funds flow picture following the busiest month for CLO issuance since March 2015. High-yield, too, kicked back into high gear, driven in part by coordinated cross-border deals for some of the same issuers currently being reviewed by loan accounts, while restructurings drove some of last week’s lively secondary action.
Loan investors are kicking the tires on a trio of large M&A deals that will set the tone for the market in the coming weeks not only for the other transactions already launched but also for those to come later this month. Traders, too, are awaiting clearing levels on these jumbo deals—which are being talked wide of where single-B executions printed earlier in the year—as well as to see how the market absorbs the supply once these deals allocate.
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Topics: Middle Market, BDC, bonds, market analytics, Fixed Income, portfolio, LevFin Insights, News
BDC COMMON STOCKS
Ended Well
Like a good beach novel, the BDC sector ended the summer in a satisfying manner.
The UBS Exchange Traded Note with the ticker BDCS – which is based on the Wells Fargo BDC Index – and which we use as a sector proxy, closed at $21.00.
That was 1.50% above the prior week’s end.
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Topics: Loans, BDC, debt, business development company, Fixed Income, News
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