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First Trust Specialty Finance&Financial Opportunities Fund (FGB)

- NYSE
  • Thu, Aug. 27, 2:57 PM
    • Prospect Capital is higher by 7.4% after beating earnings estimates and reporting a slight increase in NAV, and also helping is a near-10% jump in the price of oil.
    • Ares Capital (ARCC +2.5%), Triangle Capital (TCAP +1.8%), PennantPark Investment (PNNT +5.4%), Medley Capital (MCC +3.2%), KCAP Financial (KCAP +3.1%), OHA Investment (OHAI +2.2%), Gladstone Capital (GLAD +4.6%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Thu, Aug. 27, 2:57 PM | 1 Comment
  • Fri, Jul. 24, 3:01 PM
    • Just a 1% decline in the major averages (which are being helped by some high-profile earnings moves) is masking far greater carnage in a number of other sectors, notably healthcare (XLV -2.5%) and energy (XLE -2%).
    • Business development companies and mortgage REITs are being socked again as well, suggesting the worry may go beyond interest rates and to credit in general, especially as commodity prices continue to tumble - to pick one, crude oil at $48.06 per barrel is at its lowest price in about four months.
    • Among BDCs: Hercules Technology Growth (HTGC -4.2%), Triangle Capital (TCAP -3.3%), PennantPark Investment (PNNT -5.4%), Prospect Capital (PSEC -1.4%), Main Street Capital (MAIN -2.8%), TICC Capital (TICC -2.4%), KCAP Financial (KCAP -2.6%), THL Credit (TCRD -2.7%), FS Investment (FSIC -1.8%).
    • Among mREITs: Armour Residential (ARR -3.1%), Two Harbors (TWO -0.9%), CYS Investments (CYS -2%), Invesco Mortgage (IVR -1.5%), Capstead Mortgage (CMO -1.2%), Apollo Residential (AMTG -2.6%), Arlington Asset (AI -3.7%), American Capital Mortgage (MTGE -0.9%), Orchid Island (ORC -5.8%).
    • MReit ETFs: MORL, REM, MORT, LMBS
    • BDC ETFs: BDCL, BDCS, BIZD, FGB
    | Fri, Jul. 24, 3:01 PM | 82 Comments
  • Fri, Jun. 26, 3:43 PM
    • Continued strong economic data (June consumer confidence beat expectations) and apparently optimism over a Greek deal getting inked this weekend make for good excuses for today's selling in fixed income.
    • The U.S. 10-year yield is up seven basis points to 2.48%. Short-term rate futures continue to read more dovish than the Fed, predicting just one 25 basis point rate hike by year-end.
    • TLT -1.2%, TBT +2.4%.
    • Among the income favorites, utilities (XLU +0.6%) and equity REITs (IYR +0.2%) are being spared punishment today, leaving jittery investors to focus their selling in mortgage REITs.
    • Also in the red are BDCs, led by Prospect Capital (PSEC -2.5%) and Fifth Street Finance (FSC -1.5%). American Capital (ACAS -1.3%), Medley Capital (MDLY +0.1%), THL Credit (TCRD -1.2%), PennantPark (PNNT -1%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Fri, Jun. 26, 3:43 PM | 36 Comments
  • Thu, Jun. 18, 10:09 AM
    • Talking about BDCs in general, CFO Steven Lilly notes the recent rough patch for the sector coincides with S&P and Russell Index changes causing institutional investors to cut their BDC ownership by 30-35%.
    • Presentation slides
    • As with banks, continues Lilly, interest rate compression affects BDCs and creates challenges for dividend growth. Yet since 2012 when weighed average yield has slid by 17%, 50% of BDCs have boosted their dividend.
    • He further notes the sector's current yield of 9.7% puts it on par with some of the more speculative government bonds on the planet.
    • Speaking of Triangle Capital (TCAP -0.3%) in particular, CEO Garland Tucker says the company's track record of total shareholder value - a 15.8% IRR since 2007 - is second in the sector only to Main Street Capital's 17.3%.
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Thu, Jun. 18, 10:09 AM | 4 Comments
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Company Description
The Funds primary investment objective is to seek a high level of current income. The Fund seeks attractive total return as a secondary objective. Under normal market conditions, the Fund will seek to achieve its investment objectives by investing at least