Prospect Capital Corporation(PSEC)- NASDAQ
  • Wed, May 18, 2:37 PM
    • Encouraged by narrowing credit spreads, and an oil price about to crack $50 (on the way up, not down), business development companies are nevertheless giving up session gains, with most turning negative following the FOMC's hawkish shocker.
    • Prospect Capital (PSEC -1.3%), Ares Capital (ARCC -0.8%), Main Street (MAIN -1.9%), Apollo Investment (AINV -1.7%), Triangle (TCAP -1.1%), PennantPark Investment (PNNT -1.5%), KCAP Financial (KCAP -1.2%), FS Investment (FSIC -0.3%)
    | Wed, May 18, 2:37 PM | 25 Comments
  • Thu, Mar. 17, 10:58 AM
    • It's a big session for commodities following the Fed's dovish meeting results yesterday, particularly for oil - up 2.7% today to $41.08 per barrel, and now nicely into the green for the year.
    • Sold hard alongside the crash in energy prices, BDCs are catching a bid today.
    • Prospect Capital (PSEC +3.4%), Ares Capital (ARCC +1.7%), Apollo Investment (AINV +3%), Triangle Capital (TCAP +1.9%), THL Credit (TCRD +3%), OHA Investment (OHAI +2.6%).
    | Thu, Mar. 17, 10:58 AM | 38 Comments
  • Thu, Feb. 11, 10:37 AM
    • "Prospect’s (PSEC -2.2%) CLO equity marks are still above its peers at 93 percent of cost, with others averaging large discounts to cost," says Raymond James' Robert Dodd. “We doubt that any BDC has materially marked up the value of its CLO investments in the fourth quarter as market conditions were deteriorating and appropriate discount rates were swelling.”
    • He cuts his 2017 net investment income per share forecast to $1.01 from $1.03 to reflect lower recurring dividend income forecasts. This estimate, he notes, doesn't include the impact from any asset spinoffs, whose timing, size, and effect on earnings are not yet known.
    • PSEC is lower by 18.5% YTD and 33% Y/Y.
    • Previously: Raymond James sells the rip in Prospect Capital (Feb. 11)
    | Thu, Feb. 11, 10:37 AM | 106 Comments
  • Thu, Feb. 11, 8:35 AM
    • Prospect Capital (NASDAQ:PSEC) is lower by 3.95% after yesterday's post-earnings double-digit gain. At work is a general selloff in equity markets around the globe and a downgrade to Underperform at Raymond James.
    • On yesterday's earnings call (transcript), CEO John Barry addressed chatter of an SEC investigation, and said the company knows of  no current or pending inquiries. He castigated those who should know better for repeating lies without a shred of evidence.
    • Previously: Prospect Capital beats by $0.03, beats on total investment income (Feb. 9)
    | Thu, Feb. 11, 8:35 AM | 53 Comments
  • Wed, Feb. 10, 9:15 AM
    | Wed, Feb. 10, 9:15 AM | 18 Comments
  • Tue, Feb. 9, 5:51 PM
    • With shares having fallen to new 52-week lows today ahead of earnings, Prospect Capital (NASDAQ:PSEC) has risen to $5.70 after beating Q4 NII and total investment income estimates.
    • The closed-end investment firm reports a Q4-ending NAV of $9.65/share ($3.43B), down from $10.17 ($3.61B) at the end of Q3 due mostly to "unrealized depreciation based on volatility in the capital markets." Quarter-ending portfolio value was $6.18B (130 long-term investments), down from $6.43B at the end of Q3 (131 long-term investments).
    • Prospect: "We estimate approximately 74% of the unrealized write-down we experienced this quarter related to macro changes in the capital markets as opposed to specific portfolio credit issues, approximately 18% related to energy-related companies in the portfolio and the remaining 8% related to specific non-energy individual credit matters." The firm's energy asset concentration was only 3.2% at the end of December.
    • Debt to equity ratio was 77.9% as of Dec. 31, up from 76% as of Sep. 30 and 77.6% as of June 30. The annualized current yield of Prospect's portfolio rose 30 bps Q/Q to 13.3%. At fair value, the portfolio "consisted of 51.9% first lien, 18.8% second lien, 17.5% structured credit (with underlying first lien), 0.5% small business whole loan, 1.1% unsecured debt, and 10.2% equity investments." Prospect's structured credit equity portfolio had a 27.8% cash yield in the 12 months ending Dec. 31.
    • Portfolio net leverage stood at 4.19x EBITDA as of December, down from 4.36 as of September. Prospect: "We are pleased with the overall credit quality of our portfolio, with many of our companies generating [Y/Y and Q/Q] growth in top-line revenues and bottom-line profits ... The majority of our portfolio consists of sole agented middle-market loans that we have originated, selected, negotiated, structured, and closed."
    • Prospect's Q4 results, earnings release
    | Tue, Feb. 9, 5:51 PM | 57 Comments
  • Tue, Feb. 9, 5:34 PM
    | Tue, Feb. 9, 5:34 PM | 1 Comment
  • Tue, Feb. 9, 4:50 PM
    • Prospect Capital (NASDAQ:PSEC): FQ2 NII of $0.28 beats by $0.03.
    • Total investment income of $209.19M (+5.2% Y/Y) beats by $13.78M.
    • Shares +4.6%.
    | Tue, Feb. 9, 4:50 PM | 63 Comments
  • Mon, Feb. 8, 11:44 AM
    • A notable asset-backed publication has reported that an ongoing SEC investigation of Prospect Capital (PSEC -5.1%) may be underway, although the report has not yet been confirmed, according to Wells Fargo analyst Jonathan Bock, who maintains an Underperform rating on the stock.
    • Bock says the potential SEC inquiry involves whether PSEC and the company that values its CLOs had "conspired with Prospect to set improper marks for its CLO investments.”
    • The article says that "another question ties to whether or not PSEC rebuffed advances from other valuation firms to value the CLO portfolio out of fear this would lead to CLO markdowns of 20% or greater," Bock writes.
    • The article also says PSEC’s auditor could be under scrutiny, according to Bock.
    | Mon, Feb. 8, 11:44 AM | 149 Comments
  • Mon, Jan. 25, 3:16 PM
    • Modest declines in the major averages are masking the continued liquidation in a number of financial sectors.
    • Hotel REITs: Pebblebrook Hotel (PEB -2.4%), LaSalle Hotel (LHO -2.2%), FelCor Lodging (FCH -2.9%), DiamondRock Hospitality (DRH -3.3%)
    • Nonbank servicing: Ocwen Financial (OCN -6.9%), Walter Investment (WAC -10.5%), Nationstar Mortgage (NSM -6.7%), Altisource Portfolio (ASPS -4.6%), New Residential (NRZ -3.2%)
    • Mortgage REITs: Two Harbors (TWO -3.8%), Invesco (IVR -4.3%), American Capital Mortgage (MTGE -3.4%), Western Asset (WMC -3.7%), Apollo Residential (AMTG -3.8%), AG Mortgage (MITT -3.9%)
    • BDCs: Prospect Capital (PSEC -4%), Apollo Investment (AINV -2.2%), Medley Capital (MCC -4.1%), Gladstone Capital (GLAD -4.4%). A few in this sector are managing gains though: Main Street (MAIN +1%), TICC Capital (TICC +1.9%), Harris & Harris (TINY +1.8%)
    | Mon, Jan. 25, 3:16 PM | 78 Comments
  • Wed, Jan. 20, 11:05 AM
    • The S&P 500 is lower by 3%, oil is nearing a $26 handle, and high-yield is selling off, with HYG -1.4% and JNK -1.3%. Those two ETFs are lower by about 5% YTD and in the area of 15% Y/Y.
    • Leveraged to all the above data, BDC sector losses are eve worse. Prospect Capital (PSEC -3.6%), Fifth Street (FSC -7.4%), Ares Capital (ARCC -5.3%), FS Investment (FSIC -10.8%), Main Street (MAIN -6.4%), Blackrock Capital (BKCC -5.3%), Apollo Investment (AINV -7%), Triangle Capital (TCAP -7.9%), TICC Capital (TICC -3.1%), Pennant Park Investment (PNNT -6.5%), KCAP Financial (KCAP -7.7%), THL Credit (TCRD -8%), TCP Capital (TCPC -7.4%), Gladstone Capital (GLAD -5.6%), WhiteHorse Finance (WHF -9.3%), Garrison Capital (GARS -6.8%)
    | Wed, Jan. 20, 11:05 AM | 51 Comments
  • Tue, Jan. 12, 11:28 AM
    • Up to one-third of American oil and gas producers could near bankruptcy and restructuring by the middle of next year, according to Wolfe Research, which suggests a rebound in crude to at least $50 per barrel would be necessary for survival.
    • Oil today is threatening a $29 handle, down 2.9% to $30.58.
    • A new report from Morgan Stanley says the environment is worse than the major 1986 oil patch bust which last for five years.
    • Plenty of P-E money is standing on the sidelines, but managers see no need to rush in - instead preferring to wait for bankruptcies and the wiping out of the debt.
    • “There’s no reason to be anybody’s savior,” says FBR's Chad Mabry. “If you can just get the assets out of bankruptcy, then you don’t have to save anyone.”
    • Prospect Capital (PSEC -3.8%), Fifth Street Finance (FSC -2.6%), TICC Capital (TICC -4%), PennantPark (PNNT -4.5%), KCAP Financial (KCAP -1.7%), OHA Investment (OHAI -2.4%), Gladstone Capital (GLAD -2.7%)
    | Tue, Jan. 12, 11:28 AM | 60 Comments
  • Dec. 23, 2015, 5:44 PM
    | Dec. 23, 2015, 5:44 PM | 32 Comments
  • Dec. 15, 2015, 11:17 AM
    • The iShares High Yield Bond ETF (HYG +1.5%) and the SPDR High Yield Bond ETF (JNK +1.1%) both continue to gain from lows hit at about midday yesterday.
    • The move has roughly matched that of crude oil, which is ahead 1.3% on the session to $36.78 after threatening a $33 handle at its worst levels on Monday.
    • Bouncing alongside are those thoroughly roughed-up income vehicles, the BDCs. Among the movers: Triangle Capital (TCAP +5.5%), Apollo Investment (AINV +5.6%) - which added to its buyback last night - Medley Capital (MCC +3.3%), FS Investment (FSIC +3.4%), Fifth Street Finance (FSC +2%), and Prospect Capital (PSEC +3.5%).
    | Dec. 15, 2015, 11:17 AM | 20 Comments
  • Dec. 14, 2015, 11:20 AM
    • The price of oil has stabilized, but the major averages are moving lower, Treasury yields are moving higher in front of this week's expected Fed rate hike, and high-yield continues to sell off (with more funds gating withdrawals/selling holdings).
    • It all adds up to continued panicky liquidation in the business development complex. Prospect Capital (PSEC -4.8%), Fifth Street Finance (FSC -4.1%), Ares Capital (ARCC -4.9%), FS Investment (FSIC -3.4%), Triangle Capital (TCAP -4.8%), TICC Capital (TICC -9.1%), PennantPark Investment (PNNT -4.3%), New Mountain Finance (NMFC -5.8%), Monroe Capital (MRCC -4.5%), Oxford Lane (OXLC -10.4%).
    | Dec. 14, 2015, 11:20 AM | 65 Comments
  • Dec. 11, 2015, 3:40 PM
    • Treasury yields are plunging, but high-yield is headed the other way again as investors mull a big selloff in the major averages and oil's plunge to below $36 per barrel.
    • The pain is widespread, but a panic in credit is particularly painful for BDCs. Hitting the tape a few minutes ago, Jeff Gundlach says "there's never just one cockroach" when credit melts down.
    • Prospect Capital (PSEC -5.5%), Ares Capital (ARCC -5.7%), FS Investment (FSIC -3.6%), BlackRock Capital (BKCC -3.8%), Apollo Investment (AINV -3.8%), PennantPark (PNNT -4.1%), Medley Capital (MCC -4.1%), TCP Capital (TCPC -2.5%), Gladstone Capital (GLAD -6.4%).
    | Dec. 11, 2015, 3:40 PM | 57 Comments
Company Description
Prospect Capital Corp., a business development company, invests in middle-market companies primarily located in the US and Canada with EBITDA less than $150 million, revenues less than $750 million and enterprise values of less than $1 billion. The fund targets companies operating across a wide... More
Sector: Financial
Industry: Asset Management
Country: United States