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
Thu, May 7, 9:40 AM
- Net investment income of $6.5M or $0.18 per share vs. $4.5M and $0.13 one year ago. Dividend is $0.21.
- NAV per share of $7.16 up from $6.94 at start of year.
- Investment income from investments in CLO fund securities of $4.6M up 45% Y/Y.
- The asset management unit priced Catamaran CLO 2015-1 in Q1, and the $464M deal closed on May 5.
- Previously: KCAP Financial beats by $0.03 (May 6)
- KCAP +2.5%
Wed, May 6, 4:58 PM
Wed, May 6, 12:42 PM
- What suspiciously looks like the cracking of a major government debt bubble in Europe continues to affect the U.S., where the 10-year Treasury yield is up five more basis points today to 2.24% - its highest level of 2015.
- German 10-year yields are up another 7 bps to 0.59% - two weeks ago, they were 0.05%.
- Italian and Spanish 10-year yields have now about doubled since mid-March, but are still under 2%.
- Income favorites have struggled as rates have gone higher and the BDCs are particularly hard-hit today: Prospect Capital (PSEC -2.5%), Ares Capital (ARCC -1.6%), FS Investment (FSIC -1.3%), Main Street (MAIN -1.4%), Apollo Investment (AINV -3.6%), Triangle (TCAP -2.1%), PennantPark Investment (PNNT -1.4%), KCAP Financial (KCAP -1.5%).
- Earlier, Prospect Capital declared dividends of $0.083 per share for May, June, July, and August - inline with previous.
- ETFs: BDCL, BDCS, BIZD
Tue, Mar. 31, 10:56 AM
- 2014 net investment income of $20.1M or $0.59 per share vs. $19.9M and $0.62 in 2013 (restated).
- Taxable distribution income of $0.78 per share vs. $0.70 (restated).
- Net asset value of $6.94 per share vs. $7.51 (no effect from restatement).
- 2013 total investment income restated of $39.18M vs. $48.27M originally reported.
- Quarterly distribution was $0.25 per share at the end of 2014, and has since been cut to $0.21.
- KCAP -3.7%
Mon, Mar. 30, 11:25 PM
Wed, Mar. 25, 1:16 PM
- The Q1 quarterly distribution of $0.21 per share stands against the previous $0.25 payout.
- Previously: KCAP Financial declares $0.21 dividend (March 24)
- The company one week ago announced a delay in the filing of its Q4 results and annual report after identifying an error in its accounting for NII from equity investments in CLOs, though NAV, EPS, and distributable income will not be impacted by the correction of the error.
- KCAP -4.6%
Tue, Mar. 24, 5:18 PM
Tue, Jan. 6, 2:11 PM
- These income producers might typically enjoy the big run lower in interest rates (the 10-year yield is all the way down to 1.94%), but it's coming alongside a continued plunge in oil (now all the way down to $47.61).
- ETFs: BDCL, BDCS, BIZD
- Individual names: Fifth Street Finance (FSC -2.1%), Ares Capital (ARCC -1%), FS Investment (FSIC -1.6%), Main Street Capital (MAIN -2.6%), PennantPark Investment (PNNT -3.2%), TCP Capital (TCPC -2.9%), KCAP Financial (KCAP -1.6%).
- Notably higher for a 2nd straight day is OHA Investment (OHAI +1.9%) after SA Pro's Cahaba Research on Monday morning made the case for buying this busted BDC at a greater than 40% discount to book value.
Dec. 17, 2014, 3:41 PM
- Popular high-yield ETFs HYG and JNK are each ahead by 2% in today's session as the energy sector - which makes up a sizable portion of the high-yield universe posts a strong rally, with the XLE higher by 4.1%.
- BDCs can sort of be considered the equity equivalents of junk bonds, and they're putting in a big rally today as well.
- Prospect Capital (PSEC +1.5%), Main Street (MAIN +4.1%), Blackrock Kelso (BKCC +2.4%), Triangle Capital (TCAP +6.4%), KCAP Financial (KCAP +2.6%), THL Credit (TCRD +3.5%), Medley Capital (MCC +2.2%), Fifth Street Finance (FSC +1.5%)
- ETFs: BDCL, BDCS, BIZD
Dec. 8, 2014, 11:30 AM
- A bellwether of sorts in the BDC sector, Prospect Capital (PSEC -6.2%) earlier announced a big dividend cut, and the suspension of its stock issuance program so long as the share price is so far south of book value.
- Prospect has some of its own issues to deal with, but common across the sector is too much money chasing too few deals, and the resultant lower yields for lower quality lending.
- Fifth Street Capital (FSC -2.9%), Triangle Capital (TCAP -6.1%), TICC Capital (TICC -2.2%), KCAP Financial (KCAP -1.7%), Medley Capital (MCC -2.3%) Gladstone (GLAD -3.6%), OHA Investment (OHAI -5%), Blackrock Kelso (BKCC -1.1%), Main Street Capital (MAIN -0.2%), PennantPark (PNNT -1.3%).
- ETFs: BDCL, BDCS, BIZD
- Previously: Prospect Capital suspends ATM stock issuance program as dividend is cut (Dec. 8, 2014)
Nov. 5, 2014, 12:26 PM
- Q3 net investment income of $8.4M or $0.25 per share vs. $7.6M and $0.23 one year ago. Dividend is $0.25.
- Net asset value per share of $7.67 vs. $7.51 at the start of the year. Current price is $7.61.
- Fair value of investment portfolio of $442M as of September 30, up slightly from the start of the year.
- 3M shares issued in October in a public offering for net proceeds of $23.9M. $10.4M of convertible notes purchased.
- Conference call at 4 ET
- Previously: KCAP Financial misses by $0.02, beats on revenue
- KCAP +0.9%
Nov. 5, 2014, 9:07 AM
Oct. 15, 2014, 11:05 AM
- The spread of the junk bond index over Treasurys was below 300 basis points around the start of the summer, and around 400 bps near Labor Day. With today's sharp drop in Treasury yields (without a comparable move down in junk), the spread has blown out to more than 500 basis points.
- HYG -0.25%, JNK -0.3%
- Rough publicly traded equity proxies for high-yield, if you will, BDCs remain stuck in a bear market. Prospect Capital (PSEC -3.6%), Fifth Street Finance (FSC -2%), Main Street Capital (MAIN -3.8%), Blackrock Kelso (BKCC -2.6%), TICC Capital (TICC -5.1%), KCAP Financial (KCAP -4.7%).
- BDC ETFs: BDCL, BDCS, BIZD
- High-yield ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
Oct. 7, 2014, 9:44 AM
Oct. 6, 2014, 4:11 PM
KCAP vs. ETF Alternatives
KCAP Financial Inc is an internally managed closed-end investment company. The Company originates, structures and invests in senior secured term loans, mezzanine debt and privately-held middle market companies.
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