Seeking Alpha
View as an RSS Feed

BDC Buzz  

View BDC Buzz's Comments BY TICKER:
Latest  |  Highest rated
  • Time To Buy Technology Focused BDCs? [View article]
    BDC stock prices are easily influenced by interest rates and general economy. Strong economy indicators usually point to the potential for higher rates. BDCs do well in stable to growing economy and can have positive impacts from rising rates. However there are many investors that view BDCs as yield/income investments and will move investments around based on rate direction. This provides an opportunity for longer term investors to take advantage of volatility. Primary concerns for BDC investors should be an economic downturn and I would expect higher yield BDCs to get hit the most especially with frothy portfolios and off balance sheet leverage.
    Jul 6, 2015. 06:45 AM | Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    arthur - There is a lot of volatility in many BDCs right now. What do you mean by "jockeying for position"?
    Jul 4, 2015. 07:18 AM | 1 Like Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    rafcaf - 12 months from now you will probably be happy about that trade. FSIC has adopted a policy that takes into account capital losses when paying incentive fees. This could be a large win down the road compared to FSC, MCC and PSEC. Also FSIC is the largest manager of BDCs giving it scale beyond the others. The GPO that should provide NAV upside.
    Jul 4, 2015. 07:15 AM | Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    HD - I have mentioned to offline subscribers that we will likely be waiting for it to report next quarter before seeing upside in pricing.
    Jul 3, 2015. 06:22 AM | Likes Like |Link to Comment
  • Fidus Investment: BDC Risk Profiles [View article]
    I believe the appeal to most FDUS investors is the 100% fixed rate investments and borrowings which would indicate that the company is more likely to have stable NAV and NII related to changes in interest rates.
    Jul 2, 2015. 03:27 AM | Likes Like |Link to Comment
  • Fidus Investment: BDC Risk Profiles [View article]
    Bob - FDUS is not exactly the most well known BDC and is one of the few that has decided to be interest rate agnostic with fixed assets and liabilities. Obviously there are many pros and cons to this. FDUS also does not follow normal BDC trading probably because it is thinly traded. As for risk, I would say the higher subordinated debt could be an issue and is why I do not prefer personally.

    From a technical point I would look at the MACD which would probably be red flag as it is starting to dip like it did in July 2014.
    Jul 1, 2015. 03:30 PM | Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    HYD - My guess is that is was due to end of the quarter adjustments for funds or money managers. I wouldn't read too much into it.
    Jun 30, 2015. 04:27 PM | Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    There are very few ETFs/ETNs focused on BDCs and VC tech is a specialized focus for BDCs.
    Jun 30, 2015. 12:54 PM | Likes Like |Link to Comment
  • Rising Rates Are Good For PHK [View article]
    Great article and something to think about over the coming weeks.
    Jun 30, 2015. 12:49 PM | 3 Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    Arthur - TPVG is showing resistance and trading over 200k shares/day over the last 4 trading days which is well over its normalized average. I believe investors are waiting to see the upcoming results for TPVG as it is one of the newer BDCs with only a handful of publicly reported quarters.

    BDCs and other high-yield investments have been down over the last 3 months mostly due to interest rates and then of course today with Greece/Europe again.
    Jun 30, 2015. 03:09 AM | Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    Marek - This is TPVG's first capital raise since the IPO and it has been using appropriate amounts of leverage to get higher returns. Management paid all the underwriting fees of the offering so it was accretive to shareholders.
    Jun 28, 2015. 02:39 AM | 1 Like Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    Gene - This has been going on for a while and investors would likely get a 12 month notice before the new regulations were imposed.
    Jun 27, 2015. 12:36 PM | Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    Elliot - I think at this point HTGC is beaten down enough that selling is not ideal - but I thought that at $12.50/$13.00 as well.
    Jun 27, 2015. 12:34 PM | 2 Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    darnoc - Yes. The 100 basis point area is a problem for some BDCs and I need to update my sensitivities. Most BDCs have at least 100 basis point floors on investments so they do not make a dime and BDCs like PFLT have/had 100% of borrowings at variable rates and would experience higher costs and less NII. Of course the cash infusion will take care of that but there are many BDCs borrowing on low rate facilities that would have to convert to fixed rates.

    HTGC has low floors and no variable rate borrowings as well as no incremental incentive fees so it would benefit at 100 basis points. This is rare.

    FYI - Most of the reaction to higher rates is temporary for BDC pricing and should be used as an opportunity.
    Jun 27, 2015. 03:54 AM | 4 Likes Like |Link to Comment
  • Time To Buy Technology Focused BDCs? [View article]
    clrodrick - I glanced at CPTA and they have d/e of 1.35 and poor coverage over the last 3 quarters which could be why the stock is down and yield is high.
    Jun 27, 2015. 03:46 AM | 1 Like Like |Link to Comment
COMMENTS STATS
3,810 Comments
3,770 Likes