View Nicholas Marshi's Articles BY TICKER:
De-Constructing The New Goldman Sachs BDC
Mon, Mar. 23 • 5 Comments
- The first of two articles about the new Goldman Sachs Business Development Company, which went public March 17 with the ticker GSBD.
- In this first article we review all the main features of GSBD derived from our reading of the Prospectus including history, strategy, performance and outlook and much more.
- In the second article-coming in a week-we will discuss the opportunities and risks of investing in GSBD based on what we know so far.
Monroe Capital: Can The Best Performing BDC Stay On Top ?
- Monroe Capital was the top performing Business Development Company in 2014 in terms of stock price percentage increase. We dig into the secret of their success.
- BDC Reporter has reviewed MRCC previously on SA back in 2013. We are updating how the Company has performed financially in the intervening 6 quarters.
- Looking forward, we speculate on how MRCC might parlay the run-up in its stock and financial performance to continue expanding.
BlackRock Kelso: Why We Went From Bear To Bull
- We have been bearish on BKCC for several years due to lower earnings, a shrinking dividend and lower portfolio assets; and unhappy with management's dividend policy and strategy.
- However, on review of IIQ 2014 earnings, we have become more bullish on BKCC's prospects, and have increased our valuation of the stock to $9.9 from $9.0.
- Impetus is current price level near year lows, projected increase (or at least stability) of earnings and distributions; low leverage, good credit quality and resilient balance sheet.
- However risks remain including investment concentration; inability to grow loan portfolio despite booming debt market and hard to evaluate credit risks from new loans.
FS Investment Corporation's Capital Structure: Critical Trade-Offs
- In Part II of BDC Reporter's review of new Business Development Company FS Investment Corporation (FSIC) we review the Company's critical borrowing choices.
- FSIC has chosen-to date-to borrow short term from large banks, benefiting from low cost debt capital but with greater risk of getting into trouble should market conditions change.
- However, changes may be underway in a number of areas which could change the risk profile and economics of FSIC's borrowing, along with leverage levels, management fees and incentive fees.
The Biggest Non-Traded BDC Goes Public: Buy Or Hold ?
- The biggest non-traded Business Development Company FS Investment Corporation (FSIC) went public last week, and immediately became the 4th largest company in the sector by asset size.
- In a two part series, the BDC Reporter initiates coverage on FSIC: reviews key metrics and questions the sustainability of earnings and distributions in the medium term.
- FSIC uses GSO, the $65 billion Blackstone (BX) subsidiary, to manage the investment portfolio. We suggest this provides mixed blessings to investors in the BDC.
- In Part II, the BDC Reporter will review FSIC's capital structure and how the Company might fare in a hypothetical liquidity crisis and negative credit environment.
BDC Biggest Losers: Fidus Investment On Comeback Trail?
- The BDC Reporter launches a new series analyzing Business Development Company stocks which have fallen by 10% or more in the IQ of 2014: BDC Biggest Losers.
- We start with Fidus Investment, a micro-cap, lower middle market lender, which has performed very well since going public in 2011, in terms of earnings and price increase.
- We detail how much the stock has dropped in recent weeks (losing as much as 20% of market capitalization), and the possible reasons for the change in market sentiment.
- We close with our summary of why Fidus is a Buy after this big drop in price, and how Southland Capital Management-the parent of the BDC Reporter-is investing.
New BDC TPG Specialty: Buy Or Hold?
- Private Equity giant, TPG brings its private Business Development Company, TPG Specialty (TSLX) to the public market at $16.0 a share.
- We dissect the newest BDC's strategy, target market, loan portfolio and capital structure, and come away with mixed views.
- We apply our own Stress Tests for liquidity and credit, and generate a value range for TSLX in good times and bad.
Get An 8% Yield In A Worthy New Closed-End Floating Rate Fund
- We give a thumbs up to new CEF THL Credit Senior Loan Fund (TSLF), with a first rate manager and a safe way to invest in bank loans.
- THL Credit's approach to bank loan investing is pretty standard, but the Prospectus suggests yield will be enhanced with occasional CLO and distressed debt investments.
- We review a new Floating Rate Loan Closed-End Fund with the ticker TSLF in an already crowded CEF field. TSLF is sponsored by fast growing credit manager, THL Credit.
- The Floating Rate Loan sector has been growing exponentially since 2010, both in terms of loan supply and investor demand. Sector performance OK for ETFs, less so for CEFs.
- Many investors see Floating Rate Loans as ticket to big gains when short term interest rates rise to "normal" levels. Maybe, but still OK if rates stay low.
- Is American Capital Senior Floating An All-Weather BDC ?
- Is The WhiteHorse Finance Dividend Sustainable?
- Is Triangle Capital's Dividend Sustainable?
- Is Monroe Capital's Dividend Sustainable?
- Horizon Technology Raises New Equity
- Hercules Technology: Invest In The Stock Or The Debt?
- Full Circle Financial: A New Kind Of BDC
- Fifth Street Finance Stock Buyback Unlikely To Move Needle
- Apollo Investment Raises Capital From Parent But Questions Remain
- Business Development Companies Raising Debt In The Public Market
- THL Credit Third Quarter 2011 Results: Best Surprise Is No Surprise
- MCG Capital: Where It Goes After CEO Resignation
- Kayne Anderson Energy Earnings: 'Real' Results Point Up
- Compass Diversified Sells Largest Subsidiary
- Ares Capital To Raise New Equity Capital
- BDC Industry Q3 Outlook
- Pros and Cons Of Saratoga Investment's Proposal To Sell Stock Below NAV
- American Capital Changes Course: Announces Buyback, Dividend Policies
- Apollo Investment: An Opportunity Or A Trap?
- Impact of a Potential Recession on the BDC Industry
- Horizon Technology Finance Begins to Fix Its Capital Structure
- A Look Inside the New Leveraged BDC ETN
- A New BDC Is Launched With More to Come
- 5 Upper Middle-Market BDCs Now Facing Growth Challenges