Profile

Cover photo
BDC Buzz
68 followers|27,790 views
AboutPostsPhotosVideos

Stream

BDC Buzz
owner

Discussion  - 
 
Upcoming Dividend Cuts For BDCs: Part 2
Investors need to properly assess their BDC investments for potential dividend coverage issues.This series will attempt to help investors read the “tea leaves” beyond typical next quarter EPS projections.I believe that there a handful of BDCs that could be reducing dividends this year and this article will focus on ARCC.This article also briefly discusses the potential acquisition of ACAS.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
BDC Leverage And Baby Bonds: Part 1
I am expanding my coverage of business development companies to include "Baby Bonds".This article discusses why I am investing in baby bonds and how I will be rating them for investors.The average yield for BDC bonds is between 6.5% and 7.5% with much less risk and pricing volatility than common stock.I am working on a personal BDC portfolio with an adaptive mix of common stock and baby bonds based on pricing and market environment.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
Fitch Continues To Have A Narrow Focus For BDCs
Fitch Ratings incorrectly focuses on a small group of BDCs that it uses to paint a broader picture for the sector.There is a wide range of BDC leverage and NAV per share performance that is not taken into account by Fitch and other rating agencies.Investors should closely watch the individual BDC performance rather than relying over generalized statements by rating agencies.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
HTGC: Already Benefiting From Rising Interest Rates
Most BDCs will not benefit meaningfully from rising interest rates below 100 basis points due to investment floors, and some will experience lower earnings from increased borrowing costs.However, HTGC is likely the best-positioned BDC for rising interest rates.The company has already announced that it will have increased earnings in Q1 2016 related to the Fed rate increase in December 2015.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
BDC Total Returns: Q1 2016
This article provides updated total returns for BDC investors in 2016. Many BDCs have outperformed the S&P 500 and could have 20%+ returns for the year. However, many BDCs are still down with negative returns as the sector continues to be ‘bifurcated’ between higher and lower quality companies.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
Baby Bonds For BDCs: Set To Rise?
I am expanding my coverage of business development companies to include "Baby Bonds".The average yield for BDC bonds is almost 7% with less risk and pricing volatility than common stock.There is a good chance that bonds could be an appropriate investment for 2016.
1
Add a comment...
Have him in circles
68 people
Bo Nordberg's profile photo
AIMGMT's profile photo
Paul Rohlman's profile photo
Leo van Dorp's profile photo
David Dwyer's profile photo
Marshall Hargrave's profile photo
William Domburg's profile photo
John N's profile photo
Rosalinda Basarabescu's profile photo

BDC Buzz
owner

Discussion  - 
 
New BDCs Added to Q3 2016 Coverage
There are over 50 publicly traded BDCs and historically I have focused on the larger companies with higher trading volumes. However, many of the lesser known BDCs have been outperforming including dividend coverage and growth...
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
BDCs & 7 Years Of 20% Annual Returns
This is a series of articles comparing the historical results for BDCs that have been public for at least seven years.The purpose of this series is to identify the types of BDCs that will outperform in the coming quarters.BDCs that have consistently grown or at least preserved dividends and NAV per share have provided higher returns to shareholders.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
Which BDCs Are Attracting Institutional Investors In 2016?
BDCs currently average around 30% ownership by institutional investors but there is a wide range of ownership for each company.BDCs need to attract and retain institutional investors for increased multiples and liquidity as well as potentially less volatility.Higher quality BDCs are actively trying to attract institutional investors through ‘doing the right thing’.Many of the BDCs that currently have lower amounts of institutional shareholders ha...
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
BDCs Are Blowing Away High-Yield Bond Funds
BDCs are easily outperforming high-yield bond funds such as HYG and JNK as well as the general markets.However, there is a wide range of performance that is clearly related to results.BDCs will begin to report earnings in two weeks and investors should be watching for upcoming credit related issues.Items to watch for include restructuring of investments, individual writedowns, management discussions on calls and footnotes, etc.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
BDCs Continue to Surge
My predictions over the last 6 months have accurately timed price movements for business development companies (“BDCs”). There are now 14 BDCs outperforming the S&P 500 in 2016 even before taking into account dividends. Bifurcation has increased and poorly managed BDCs continue to underperform, likely due to potential upcoming credit issues.
1
Add a comment...

BDC Buzz
owner

Discussion  - 
 
Hercules Capital: Is It Time To Take The Plunge?
Hercules Capital has historically traded at a meaningful premium to NAV, but has recently been trading lower.The company announced its year-end portfolio update that is partially responsible for the lower share price.I sold 50% of my Hercules Capital shares in March 2015 and am looking to repurchase.This article also briefly discusses the resolution of unfunded commitments with the SEC for Hercules Capital, TriplePoint Venture Growth and Horizon ...
2
Add a comment...
People
Have him in circles
68 people
Bo Nordberg's profile photo
AIMGMT's profile photo
Paul Rohlman's profile photo
Leo van Dorp's profile photo
David Dwyer's profile photo
Marshall Hargrave's profile photo
William Domburg's profile photo
John N's profile photo
Rosalinda Basarabescu's profile photo
Basic Information
Gender
Male
Work
Occupation
Contributing Writer
Links
Other profiles
Contributor to