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  • Prospect Capital And The Cat And Mouse Game [View article]
    William - Thanks for the reply and I always try to encourage other contributors in the BDC space as it seems to be under-covered.
    Dec 27, 2014. 09:34 AM | 1 Like Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    Gawilley - The only reason I engage with you is because you continue to mislead other readers. Seeking Alpha has decided to support comments from people like you so I have reduced the content I post publicly including general rankings, suggested BDC portfolios and opinionated information on specific BDCs. Yet you continue to attack my credibility regarding a stock you are now insinuating that you might not have owned which would be strange because the amount of time and energy you have taken to leave negative comments on my articles.

    You are correct that you have the right of freedom of speech that is fully supported by SA. That does not mean you should abuse it. You have clearly stated your case that I mislead investors to purchase MCC earlier this year. That is your opinion and it has been heard be all of us over and over again. To be honest I find it hard to differentiate between MCC, PSEC, FSC, FULL and MCGC. I used to have a negative opinion of GLAD, AINV and BKCC that have started to course correct and I am hoping that PSEC is joining them.
    Dec 27, 2014. 09:23 AM | 2 Likes Like |Link to Comment
  • Prospect Capital And The Cat And Mouse Game [View article]
    William - I would just like to congratulate you on being able to publish 'F'ing' in your article as well as being able to suggest that an emperor has no clothes. I would have been crucified by a group of f'ing trolls that continue to litter my articles but somehow did not find their way to your article - yet.

    FYI - I'm not saying that I completely agree with your article, but always enjoy seeing things from different points of view.
    Dec 27, 2014. 08:28 AM | 3 Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    Steve - It's taking longer than I thought due to sorting out oil, gas vs. energy and then upstream, midstream, downstream as well as assets class of those loans with 1st lien vs 2nd and subordinated not to mention the rates. Just wanted you to know that I remember your comment in the first survey even if I didn't get back to you yet.
    Dec 24, 2014. 04:38 PM | Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    Paul - I agree with most of what you said and I think that people forget that BDCs under $1 billion can easily adjust borrowings over two to three quarters to account for potentially rising rates. For now, smaller BDCs can take advantage of lower rates with variable structures while also utilizing SBA loans if possible.

    As for BDC dividends you are correct and as long as they have a strong portfolio they can continue to pay in most environments. I think capital preservation and dividend sustainability are tied to many of the same things and as long as management is strong so is the investment.

    At some point investors will wake up and multiples will resume normal levels.
    Dec 24, 2014. 04:24 PM | 1 Like Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    Steve - Most likely I will only cover oil related issues at a high level in public articles and will have specific BDC info for offline reports. I'm getting tired of comments from readers like 'Gawilley' in this article whining about making bad trades based on specific BDC info so it's not worth the headache.
    Dec 24, 2014. 04:14 PM | 2 Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    I am currently going through each BDC looking for oil/gas vs. energy but also identifying upstream assets that are the most at risk as well as 2nd lien and subordinated loans in this area. I will try to cover at a high level in this series but will probably in a few weeks.
    Dec 24, 2014. 02:57 PM | 4 Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    Mayhawk - BDCs will start to report results Feb 1 and oil will likely be a hot topic for certain BDCs. So that will probably change from an investor awareness standpoint over the coming weeks.
    Dec 24, 2014. 02:43 PM | 1 Like Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    FYI - I should add that PSEC now has better dividend coverage than MCC due to the dividend cut for PSEC and the large portfolio yield decline for MCC.
    Dec 24, 2014. 02:38 PM | 4 Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    wdchil - I would suggest going through transcripts from previous calls on BDCs you are interested in and then comparing what actually happened. There are quite a few that stated share issuance and dividend policies that did not match the results. Also look at the pace of originations. Most higher quality BDCs could not find appropriate deals for 2013 and Q1/Q2 2014 and resulted in lumpy growth or even portfolio declines for certain quarters. This has started to change and covenants and yield spreads have been improving.
    Dec 24, 2014. 01:07 PM | 1 Like Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    G3 is right and shareholder alignment is closer for internally managed BDCs due to management fees. This is one of the many reasons investors usually pay a premium for them.
    Dec 24, 2014. 12:50 PM | 2 Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    Chancer - Always keep in mind opportunity cost compared to original purchase price. Make sure your $$$ is getting the highest risk adjusted returns.
    Dec 24, 2014. 12:46 PM | 1 Like Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    wdchil - The average BDC is young compared to many other sectors so I understand that concern but like you said it comes down to trusting management. Obviously BDC management have been in the lending industry for much longer than the average BDC operating length. Also it comes down to looking out for shareholders vs. conflict of interest - as you mentioned. BDCs trading at a meaningful discount to NAV are likely not trusted by shareholders so it has been priced in but gives higher yields to investors.
    Dec 24, 2014. 12:42 PM | 2 Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    Business Development Company:

    http://seekingalpha.co...
    Dec 24, 2014. 12:02 PM | Likes Like |Link to Comment
  • Top 10 BDC Issues For 2015: Part 2 [View article]
    G3 - That is a good question and I think most are waiting for increased div cover from increased leverage but mgmt. is taking their time to select new investments.
    Dec 24, 2014. 11:11 AM | Likes Like |Link to Comment
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