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Nicholas Marshi

 
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  • BlackRock Kelso: Why We Went From Bear To Bull
    Mon, Aug. 4 BKCC 12 Comments

    Summary

    • 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
    Mon, May. 5 FSIC 16 Comments

    Summary

    • 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 ?
    Mon, Apr. 21 FSIC 18 Comments

    Summary

    • 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?
    Tue, Apr. 1 FDUS 5 Comments

    Summary

    • 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?
       • Wed, Mar. 26 TSLX 6 Comments

    Summary

    • 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
       • Sat, Mar. 15 TSLF 26 Comments

    Summary

    • 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 ?
    Editors' Pick • Tue, Feb. 18 ACSF 20 Comments
  • Is The WhiteHorse Finance Dividend Sustainable?
       • Sep. 6, 2013 WHF 3 Comments
  • Is Triangle Capital's Dividend Sustainable?
       • Sep. 2, 2013 TCAP 15 Comments
  • Is Monroe Capital's Dividend Sustainable?
    Sep. 2, 2013 MRCC 8 Comments
  • Horizon Technology Raises New Equity
    Jul. 18, 2012 HRZN 2 Comments
  • Hercules Technology: Invest In The Stock Or The Debt?
    Jul. 3, 2012 HTGC 3 Comments
  • Full Circle Financial: A New Kind Of BDC
    Jun. 20, 2012 FULL 2 Comments
  • Fifth Street Finance Stock Buyback Unlikely To Move Needle
    May. 25, 2012 FSC 15 Comments
  • Apollo Investment Raises Capital From Parent But Questions Remain
    Apr. 3, 2012 AINV 7 Comments
  • Business Development Companies Raising Debt In The Public Market
    Mar. 20, 2012 ARCC, TCAP, HRZN 12 Comments
  • THL Credit Third Quarter 2011 Results: Best Surprise Is No Surprise
    Nov. 3, 2011 TCRD 1 Comment
  • MCG Capital: Where It Goes After CEO Resignation
    Nov. 1, 2011 MCGC 3 Comments
  • Kayne Anderson Energy Earnings: 'Real' Results Point Up
    Oct. 20, 2011 KED Comment!
  • Compass Diversified Sells Largest Subsidiary
    Oct. 20, 2011 CODI 4 Comments
  • Ares Capital To Raise New Equity Capital
    Oct. 18, 2011 ARCC 9 Comments
  • BDC Industry Q3 Outlook
    Oct. 11, 2011 ACAS, ARCC, AINV 9 Comments
  • Pros and Cons Of Saratoga Investment's Proposal To Sell Stock Below NAV
    Sep. 28, 2011 SAR 7 Comments
  • American Capital Changes Course: Announces Buyback, Dividend Policies
    Sep. 20, 2011 ACAS 7 Comments
  • Apollo Investment: An Opportunity Or A Trap?
    Aug. 23, 2011 AINV 7 Comments
  • Impact of a Potential Recession on the BDC Industry
    Jun. 27, 2011 ACAS, BKCC, AINV 8 Comments
  • Horizon Technology Finance Begins to Fix Its Capital Structure
    Jun. 21, 2011 HRZN 2 Comments
  • A Look Inside the New Leveraged BDC ETN
    Jun. 1, 2011 BDCL 2 Comments
  • A New BDC Is Launched With More to Come
    May. 27, 2011 NMFC, CODI, KED 3 Comments
  • 5 Upper Middle-Market BDCs Now Facing Growth Challenges
    May. 22, 2011 ACAS, ARCC, AINV 7 Comments
  • A Look at Market Vectors' Latest: First BDC, Finance Company ETFs
    May. 2, 2011 BDCS, PSP Comment!
  • Reviewing the New Wells Fargo Business Development Company Index
    Apr. 21, 2011 ARCC, ACAS, AINV 15 Comments