I will be adding a link to this page in the right hand menu where it will remain
This page is intended to be used as the discussion page for Business Development Company (BDC) items.
By adding this page it is hoped to take some of the discussion ‘pressure’ off of the Sandbox page which is the most used discussion page.
Users who liked this:
Capital Southwest Announces Pricing of Convertible Notes Offering…
https://www.globenewswire.com/news-release/2024/11/05/2974571/0/en/Capital-Southwest-Announces-Pricing-of-Convertible-Notes-Offering.html
Does anyone have experience / comments on BIZD, the VanEck BDC income etf? I am setting up my wife’s retirement dividend account and would like to include at least one BDC in the account. BIZD is an etf that includes many BDCs (ARCC, Main St, KKR, etc) / pays a 10% dividend / Morningstar rating of 3*. However it does have a very high expense ration of 10+%.
I currently own ARCC and am very happy with it’s performance. On the surface, BIZD appears to good to be true.
this is an Index fund , and the fees seem excessive for doing nothing but tracking an Index; 21.7% of it’s assets are in ARCC ;
so just by it ; I also own OBDC and MSDL on their top ten list , and i;de buy either one of those now ;
Ted, thanks for the comments. I will take a look at both OBDC and MSDL. I am looking for “sock drawer” dividend paying investments for my wife’s retirement portfolio. Based on a very quick look, MSDL does not appear to meet this criteria.
Larry, this website might help a little bit in your research. It’s a weekly summary of statistical data about BDC’s. It is not comprehensive, but it’s a start…
scroll down to the bottom for a PDF you can use.
https://www.raymondjames.com/corporations-and-institutions/investment-banking/industries-of-focus/financial-services/bdcs-closed-end-funds-and-spacs
LarryL, here is another BDC source. once again, not comprehensive but a good place for a quick reference. The website takes a while to load.
https://cefdata.com/bdc/
Another BDC website to be aware of is https://bdcreporter.com/
Depending on how much you are planning to invest in BDCs, the paid subscription might be worth your while. I was a frequent reader back when more analysis was available for free, and the analysis was always clear and in depth.
yes, that’s a good one and i’ve read his reporting for a number of years now.
would recommend PBDC actively managed bdc etf.. it has outperformed since inception september 2022 with little variance.. the pbdc/bizd pair is currently trading near fair value
Went from half to full position in MSDL @ $19.72.
msdl – definitely one of the, if not the, best values (with high quality) right now in bdc space imo
mostly due to the lockup releases of the stock for the formerly private bdc imo
i started a position here yesterday and will add on weakness
I thought this article from Fitch on PIK and BDC’s was interesting. I’d like to find more information on this subject.
https://www.fitchratings.com/research/corporate-finance/fitch-ratings-bdc-cash-income-dividend-coverage-pressured-by-payment-in-kind-income-03-09-2024
Thanks Voner, good read. Article picked out several of the better known BDC’s and posted their credit rating and PIK income. Two metrics to look at. What the article didn’t do was give an example of BDC’s that have higher PIK. Also something to look at is the percentage of loans placed on non payment.
I believe there are a couple types of PIK- the less dangerous is written into the original contract, the other develops as the company gets into trouble & writes a pik IOU, so to speak.
Q online is showing a new issue , CICB 7.5%
The best source of information on all BDC’s that I have found is The BDC Universe, https://cefdata.com/bdc/.
This is a free site where information is updated daily.
You can print a 4 page report (landscape) of all BDC’s and relevant financial inf.
It takes a few minutes to download due to all the info.
Thanks for the link.
Is there any site where PIK income is summarized by BDC?
Great question.
The only source I am aware of is BDC BUZZ which requires a subscription.
BDC New Mountain Finance, (NMFC) issued new make whole note 6.2% due 10/15/27 Baa3/BBB-/BBB-, cusip #647551AG5.
CEFA is a great resource for CEFs.
https://www.cefa.com/
Does not provide debt issues of the underlying.
Does provide a lot of product information as well as relative to indexes and ratings.
Very useful for comparisons and identifying ‘silos’ for sector diversification.
I generally prefer total assets greater than $50 – 100mm. While $50mm may seem low, there are several long-time vendors, 15-20years++ who have maintained smaller-sized total-portfolio holdings. They have survived and also generate nice $Distros!
JMHO, Steven
Thanks Steve, All the info everyone is sharing is great 👍
One of my fav. BDC which add to periodically is ARCC.
Glad entertaining separate thread for BDCs.
Tim,
Have you given any thought as this site’s popularity grows that this current format might not work out long term? Some examples are it is hard to find older conversations, that more complex topics are hard to discuss over a longer period of time due to them getting buried/lost, that longer topics cannot be held reasonably well due to structure of them, etc…?
I agree this works perfectly fine with fewer users but if I walked away for a month and came back it would be difficult to catch up in a reasonable manner. Sometimes a conversation starts in READER ALERTS, then flows over to a main post you create, and then possibly leaks into the sandbox down the road. It is hard to keep track of things. When people post things they obviously want the most eyes on it as possible to get the best replies.
Just talking out loud. I am not sure what replacements there are with minimal work while also keeping the blog like nature of the site. This currently feels very word pressy to me.
Tim,
I hope others don’t mind, but I might also discuss CEF here as a lot of us hold preferred in them and some may hold the common.
BDC / CEF might work . I find myself looking at more income alternatives as rates drop.
Bear, the new head of Vanguard said that the company would be looking at the expansion of fixed income. Will probably take quite awhile but at least they are headed in the right direction. Here are a few clips from their release and a link to the article…..
Vanguard’s new chief, Salim Ramji, said on Wednesday that he plans to expand the fixed income offering of the U.S. top asset manager given the market’s size and opportunities.
“When you look at the macro environment for fixed income today , relative to say 10 years ago, it has a really important place,” said Ramji. “It’s going to be more important based on … our views of the long-term rate
environment,” he added.
Ramji said he was also looking at opportunities in private markets, a sector that includes debt and equity that is not publicly traded or listed. “In privates we’re open to exploring partnerships,” he said.
https://www.reuters.com/markets/us/vanguards-new-ceo-eyes-fixed-income-offering-expansion-2024-09-25/#:~:text=NEW%20YORK%2C%20Sept%2025%20(Reuters,the%20market's%20size%20and%20opportunities.
Steve good post. Doesn’t take a lot of thought about adding more fixed income considering that the over 60 demographics has been increasing and we want less risk and a little more safer income. Also since the retail investor is restricted from buying anything designated 144a it would make sense for Vanguard to buy and package something for income investors.
CM
It’s a good time to review CEF.!! I like to remind myself what their longer term charts look like…..as I take a closer look at any issue. Some are still buys at such high levels.
If you Prefer, what is the coverage, do they have preferred, what level of debt do they invest in, and what is the extent of non-performing loans. discount to nave means little to me but I like seeing the stock above 10.00 a share, the higher the better. I like to see if Quantum lists any reverse stock splits. I also like going to the dividend channel and looking at the history of the common dividend to see if it has been increasing or is there a history of dividend cuts. Cutting dividends is an indicator to me of the preferred being a higher risk investment.