BDC Harvest Capital Credit Corporation Serves Up A Tasty $25 Baby Bond
- BDC Harvest Capital Credit Corporation has sold a 7% Baby Bond.
- Being debt of a BDC brings an added level of safety.
- With a medium duration of 5 years to maturity income investors should have an interest in this issue.
Harvest Capital Credit: Heads Management Wins, Tails You Lose
- HCAP's revenue comes from loans at 300% higher yield than junk bonds.
- Fee structure incentivizes management to swing for the fences.
- After 30% management fees, investors are not adequately compensated for risk.
Nov. 13, 2014, 8:44 AM
- Q3 core net investment income of $2.2M or $0.36 per share vs. $1.4M and $0.23 one year ago. Dividend of $0.3375.
- Net asset value per share of $14.52 vs. $14.45 at the start of the year. Last night's close of $11.79 is an 18.8% discount to NAV. The stock is lower by 21.4% since its IPO 18 months ago.
- Net portfolio activity of $9.2M in Q3 vs. $10.8M one year ago.
- Weighted average yield on investments of 15.4% is lower by 120 basis points since the start of the year.
- Conference call at 10 ET
Previously: Harvest Capital Credit NII in-line, misses on revenue
- HCAP no trades premarket
Nov. 13, 2014, 8:33 AM| Comment!
Aug. 13, 2014, 11:13 AM
Aug. 13, 2014, 11:08 AM
May. 23, 2014, 7:36 AM
- The selloff in BDCs is a buying opportunity, writes BDC reporter, noting the opportunity today to invest in a basket of BDCs (using BDCS as a proxy) at an 11% higher yield than just three months ago. The sector is yielding 43% more than high yield bonds (HYG) and nearly double floating rate loans (BKLN).
- The higher yield, of course, reflects market concern distributions are set to fall (and BKCC and MCGC cut in Q1), but for the sector as a whole, distributions have been fairly stable over the last three years. Further, a number of players are under-leveraged or in growth phase, and occasionally have realized gains which are paid out as special distributions.
- Keep this list around, says BDC Reporter, musing on those who may boost payouts over the next year: ACAS, ARCC, ACRE, ACSF, CPTA, FDUS, FSFR, FULL, HCAP, HTGC, MAIN, MVC, TAXI, PSEC, TCPC, TSLX
- ETFs: BDCL, BDCS, BIZD
May. 14, 2014, 8:56 AM
Mar. 31, 2014, 9:24 AM
Nov. 12, 2013, 11:36 AM| Comment!
Nov. 12, 2013, 9:25 AM
Aug. 13, 2013, 10:30 AM| Comment!
HCAP vs. ETF Alternatives
Other News & PR