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Prospect Capital Witnesses Fall in Total Investment Income

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Components of total investment income

Prospect Capital (PSEC) generates total investment income from interest income, dividend income, and other income. The company witnessed a fall in its fiscal 4Q17 total investment income, from $193 million in fiscal 4Q16 to $166.7 million last quarter, mainly due to the fall in its total interest income and other income in fiscal 4Q17.

In fiscal 4Q17, the company’s total interest income stood at $160.5 million, compared with $174.8 million in fiscal 4Q16. The decline in total interest income came as a result of a fall in interest income generated through structured credit securities and control investments.

Prospect’s other income saw a substantial YoY (year-over-year) fall in fiscal 4Q17. In fiscal 4Q17, the company reported other income of $5 million, compared with $16.7 million in fiscal 4Q16. PSEC’s total dividend income in fiscal 4Q17 stood at $1 million, compared with $1.4 million in fiscal 4Q16.

Net margin

Prospect Capital (PSEC) had a net margin of 30.7% on June 30, 2017. Other investment management companies (XLF) had following net margins as of June 30:

  • BlackRock Capital Investment (BKCC): 67.2%
  • Fidus Investment (FDUS): 57.7%
  • Ares Capital (ARCC): 62.7%

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