BDC Weekly Review: Hercules Capital Posts Strong Q2 Results

We take a look at the action in business development companies through the fourth week of July and highlight some of the key themes we are watching. Business Development Companies (BDCs) underperformed the broader income market this week, with only WHF finishing in the green. HTGC priced a 6.3% 2031 $325m bond to refinance existing debt, modestly increasing interest expense but projecting a >2% NAV rise and >6% NII growth in Q2. SCM shares dropped 17% after a 26% dividend cut, reflecting prior NII shortfall; its 44% discount and high yield suggest value but come with elevated risk. Early Q2 BDC results are mostly positive, with NAVs rebounding and further recovery likely to extend into Q3, offsetting prior quarter weakness.

Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company [BDC] sector from both the bottom-up, highlighting individual news and events, as well as the top-down, providing an overview of the This article was written by ADS Analytics 13.68K Followers Follow ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.