Prospect continues Friday's slide

|About: Prospect Capital Corpora... (PSEC)|By:, SA News Editor

Prospect Capital (PSEC) is lower by another 1.5% premarket after Friday's 2.1% decline behind the Chapter 7 bankruptcy filing by portfolio company New Century Transportation.

The carrying value of the loan of $35.9M (was originally $44M) pales in comparison to Prospect's $6B loan portfolio, but -  as SA's Lawrence Zack Galler points out - the speed at which the investment progressed from performing to bankruptcy (less than 2 quarters) should unnerve investors relying on Level 3 portfolio marks when economic times get tough.