Medley Capital downgraded at Wells Fargo

|About: Medley Capital (MCC)|By:, SA News Editor

Medley Capital (MCC) trades for 1.07x NAV vs. 1.02x for its Quartile 3 peers, says Jonathan Bock, downgrading the stock to Market Perform. Other catalysts include the potential for near-term volatility in BDCs thanks to the pending Russell rebalance, near-term credit issues pertaining to two sour Medley investments, and the potential that new origination returns are below the company's cost of capital.

Generally, Bock likes the idea of rolling back exposure to lower quartile BDC names in favor of Quartile 1 BDCs ahead of the Russell moves.