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  • TICC Capital: What Comes Next? [View article]
    Bart - I do not know enough about OXLC's investments or the types of CLOs it holds. TICC is a large manager of CLOs and very involved in the industry as I mentioned in the comments above.

    I would hope that TICC 'cherry picks' the best of the bunch but I'm sure it all comes down to risk/reward so you may want to look at the IRRs from the OXLC investments.

    TICC has monthly CLO trustee reports available on the website.
    May 5, 2015. 04:11 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    Chancer - BDCs are still outperforming the S&P 500 for the year but I agree that they should be doing better as people continue to seek income that they are not able to get from safer investments.
    May 5, 2015. 04:07 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    HYD - Not the article. Many of the higher yield BDCs took a hit and are near fresh lows.
    May 5, 2015. 04:04 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    BSP - The premium is paid for BDCs that 'walk the walk' and deliver higher value. Investors reward them with higher multiples that then gives them the ability to raise cheaper capital that then comes full circle because they can easily increase NAV through accretive equity raises as well as put the capital to work to increase NII per share.

    Key words 'per share'.

    BDCs that only 'talk the talk' are trading at 10%+ discounts to NAV. However, there are other reasons some BDCs are trading at a discount due to energy and credit related concerns.
    May 5, 2015. 03:55 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    BSP - That would be a bad thing for PSEC for many reasons but mostly optics for investors. The valuations for CLOs are probably more art than science at the end of the day. I'm sure there are many calcs but ultimately someone has to decide about the 'fuzzy' measures.

    See my comment above about TICC not knowing exactly why they have depressed values. Investors should see that as honest and refreshing as compared to fear. I would like to see that same transparency from PSEC.
    May 5, 2015. 03:50 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    Zucks and HD - Come on guys. The first line reads "This is a series of articles comparing the historical results for BDCs that have been public for at least six years."

    FSIC has been reporting as a public since early 2009 but only has public stock info for 12 months.

    The BDC industry is relatively new so there were plenty of BDCs that I could not include in these articles. Keep in mind that over time credit issues will appear in any portfolio so until some of the newer BDCs have a more seasoned track record it does not make sense to compare and is not apples to apples.
    May 5, 2015. 03:43 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    CTP - That is the million dollar question and when you have management of TICC saying "whether or not those lower prices were in some way a manifestation of an expectation for lower future cash flows is debatable and I think uncertain."

    Keep in mind that TICC is in many ways an expert with CLOs compared to BDCs that simply invest in them.
    May 5, 2015. 03:36 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    PP - Glad you like.
    May 5, 2015. 03:33 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    This would be a good thing for BDCs that are not still acquiring CLO investments which includes TICC because it has maxed out its 30% non-qual bucket.

    There are many types of CLOs and valuations are tricky (at best) so I am hoping that TICC took conservative marks with plenty of upside. We will find out more on May 11.
    May 5, 2015. 03:32 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    ND - I like the Franklin Square funds but FSIC has not been trading as a public company for the last six years.

    The first bullet point in these articles:

    "This is a series of articles comparing the historical results for BDCs that have been public for at least six years. "
    May 5, 2015. 03:28 AM | Likes Like |Link to Comment
  • TICC Capital: What Comes Next? [View article]
    This series is using historical results to assess why some BDCs have higher returns regardless of dividends yield. At the end I will have an article that uses the information in these article to look at returns going forward.

    For example using this article you can see that TICC and PSEC have very different returns but TICC has recently started to have lower returns probably related to its CLO valuations and declining dividend coverage.

    The question you have to ask is what has management done to change this or are they just waiting for outside factors to turn positive?

    FYI - I'm not a fan of BDCs that continually blame things outside of their control for a lower stock price, especially when then are plenty of things in their control that they could be doing.
    May 5, 2015. 03:26 AM | Likes Like |Link to Comment
  • PennantPark Investment: What Comes Next? [View article]
    Stephen - PNNT is on my watch list for div cover. For now the div is stable but see my comments above. If there are credit issues an/or lower portfolio yield there could be a cut at some point.
    May 3, 2015. 05:09 AM | Likes Like |Link to Comment
  • PennantPark Investment: What Comes Next? [View article]
    Rose - See my comments above. It will be interesting to see what happens when PNNT reports later this week. I would be watching for any credit issues including energy related as well as overall portfolio yield. Those are my primary concerns that could be ready for a turnaround.
    May 3, 2015. 04:58 AM | Likes Like |Link to Comment
  • PennantPark Investment: What Comes Next? [View article]
    HYI - There might be more writedowns to PNNT investments but could be another buying opportunity later this week.
    May 3, 2015. 04:54 AM | Likes Like |Link to Comment
  • PennantPark Investment: What Comes Next? [View article]
    Cymbalta - Thanks for continuing to read/comment. I will add more color to PNNT in the following articles later in this series.
    May 3, 2015. 04:51 AM | Likes Like |Link to Comment
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