Ares Capital Corp

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  • uploads///Interest income
    Company & Industry Overviews

    Why Closed-End Funds Are Not That Enthusiastic about Rate Changes

    Prospect Capital (PSEC) is strengthening its capital position in order to take advantage of mispricing during volatile times.

    By Robert Karr
  • uploads///Investment income
    Earnings Report

    Prospect Capital Plans to Raise Capital through Spin-Offs

    Prospect Capital (PSEC) is targeting spin-offs in order to raise capital to be redeployed in asset classes yielding higher returns.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    Prospect’s Valuation Discount Consistent on Lower Originations

    Prospect Capital’s (PSEC) stock has fallen ~3% in the past quarter, and it has risen ~11% in the past year. The company is currently trading 7% lower than its 52-week high.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    Prospect Capital’s Valuations: Fair amid Originations, Leverage

    Prospect Capital (PSEC) stock rose 3.0% over the past three months and 20.0% over the past year. The company is currently trading 5.0% below its 52-week high.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    Prospect Valuations Fair amid Rising Originations, Strong Yields

    Prospect Capital’s (PSEC) stock fell ~7% in fiscal 1Q17 (September quarter) but has risen ~6% in the past 12 months.

    By Robert Karr
  • uploads///rel val
    Company & Industry Overviews

    A Look at Prospect Capital’s Discounted Valuations

    The PE ratio for Prospect Capital (PSEC) is 8.97x on an NTM (next-12-month) basis, which implies its discounted valuation.

    By Raymond Anderson
  • uploads///PSEC
    Earnings Report

    Prospect’s Fiscal 3Q18 Results Beat Estimates

    Prospect Capital Corporation (PSEC) released its earnings report for fiscal 3Q18 on May 9. The results were for the quarter that ended on March 31.

    By Raymond Anderson
  • uploads///Valuations
    Company & Industry Overviews

    Prospect Capital’s Valuation: Fair or Discounted in Long Term?

    Prospect Capital (PSEC) stock has fallen 14.5% over the past six months and 16.9% over the past year.

    By Robert Karr
  • uploads///Interest income
    Company & Industry Overviews

    What to Expect for Prospect Capital’s Yield Expansion in 2018

    Prospect Capital (PSEC) has seen a decline in yields in recent quarters to 9.9% compared to a high of 13% in 2016.

    By Robert Karr
  • uploads///PSEC originations fiscal Q
    Earnings Report

    Assessing Prospect Capital’s Discounted Valuations

    Analysts have given a one-year price target of $6.88 per share on Prospect Capital stock, which reflects a marginal rise of 0.29% from its current price.

    By Raymond Anderson
  • uploads///PSEC originations fiscal Q
    Earnings Report

    Understanding Prospect Capital’s Decline in Originations

    Prospect Capital (PSEC) witnessed a substantial fall in its originations in fiscal 4Q17, compared with fiscal 3Q17.

    By Raymond Anderson
  • uploads///ARCC and comp
    Earnings Report

    Ares Capital’s Purchase of Loans from SSLP

    Within one year, Ares Capital Corporation (ARCC) stock is expected to reach $18.21, reflecting a rise of ~11.0% from its current price.

    By Raymond Anderson
  • uploads///Prospect Analysts ratings
    Company & Industry Overviews

    Prospect Capital’s Ratings: What Wall Street Analysts Have to Say

    Although Prospect Capital (PSEC) has been delivering decent returns to investors, there has not been much change in the analysts’ ratings.

    By Raymond Anderson
  • uploads///Prospect Relative Valuation
    Company & Industry Overviews

    Prospect Capital’s Increasing Valuations in 2017

    Analysts have given PSEC a one-year price target of $8.50 from the current price level, reflecting 0.7% growth.

    By Raymond Anderson
  • uploads///Prospect portfolio investments
    Company & Industry Overviews

    Prospect Capital’s Total Investments Increase in 2017

    In fiscal 3Q17, Prospect Capital’s total value of investments stood at $6.0 billion in 125 companies, compared to $5.9 billion in fiscal 2Q17 in 123 companies.

    By Raymond Anderson
  • uploads///Prospect capital Income
    Company & Industry Overviews

    Prospect Capital Prioritizes Secured Lending

    About 70% of Prospect Capital’s portfolio is composed of first and second lien secured loans

    By Raymond Anderson
  • uploads///Prospect Actuals vs Estimates
    Company & Industry Overviews

    Prospect Capital’s Disappointing Performance in Fiscal 3Q17

    Prospect Capital (PSEC) reported a decline in its net investment income in its fiscal 3Q17 earnings. Analysts expect PSEC’s fiscal 4Q17 EPS to reach $0.20, representing no change from fiscal 3Q17.

    By Raymond Anderson
  • uploads///Analyst ratings
    Miscellaneous

    Ares Capital’s Analyst Ratings Suggest Stable Earnings in 2017

    In February 2017, 12 of the 17 analysts covering Ares Capital, or ~71%, have rated it as a “buy” or a “strong buy.”

    By Robert Karr
  • uploads///Valuation
    Earnings Report

    Ares Capital Valuations at a Premium on Relative Outperformance

    Ares Capital stock has risen ~11.7% over the past six months. The company saw a strong performance in 4Q16 on higher deployment, stable yields, and expense management.

    By Robert Karr
  • uploads///Risk profile
    Earnings Report

    Ares Capital’s Preference for Second Lien Continued in 4Q16

    Ares Capital has consistently enhanced its exposure to second lien debt in a bid to generate higher yields. In 4Q16, its second lien debt made up 33% of its new commitments.

    By Robert Karr
  • uploads///Yields
    Earnings Report

    Ares Capital’s Credit Statistics Deteriorated Marginally in 4Q16

    Ares Capital’s (ARCC) portfolio totaled $8.8 billion at fair value on December 31, 2016. Its total assets stood at $9.2 billion.

    By Robert Karr
  • uploads///Estimates
    Earnings Report

    Ares Capital Beat Estimates for Deployments, Yields in 4Q16

    Ares Capital (ARCC) posted EPS (earnings per share) of $0.42, beating Wall Street analysts’ consensus estimate of $0.39 in 4Q16.

    By Robert Karr
  • uploads///Investments
    Earnings Report

    ARCC’s Net Investments Rose on Senior Secured Loans in 4Q16

    By the end of December 2016, Ares Capital (ARCC) had a diversified portfolio of 218 companies totaling $8.8 billion at fair value.

    By Robert Karr
  • uploads///Analyst ratings
    Miscellaneous

    What Analyst Ratings Say about Ares Capital’s Performance

    Analysts’ ratings for Ares Capital Ares Capital’s (ARCC) analyst ratings have improved over the past few months due to rising earnings and originations. So far in February 2017, twelve of the 17 analysts covering the company have rated it as a “buy” or a “strong buy.” Five analysts rated it as a “hold.” Since January 2017, Ares […]

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    What Boosted Ares Capital’s Valuation?

    Stock performance Ares Capital (ARCC) stock has risen ~14% over the past six months and 37% over the past year due to improved operating performance. In 3Q16, the company saw higher deployments and yields, and lower expenses. The company declared a dividend of $0.38 per share in 3Q16, in line with that of 3Q15. With a dividend […]

    By Robert Karr
  • uploads///Risk profile
    Earnings Report

    Could Ares Capital’s Second-Lien Preference Continue in 4Q?

    Second-lien preference Ares Capital (ARCC) has consistently increased its exposure to investments in second-lien debt to garner higher yields. In 3Q16, second-lien debt made up 23% of its new commitments and exits made up 18%. Second-lien loans formed 32% of the company’s total portfolio, and first-lien senior secured loans fell to 25% from 29% in […]

    By Robert Karr
  • uploads///Yields
    Earnings Report

    Ares Capital’s Credit Statistics Expected to Improve in 4Q16

    Broad markets driving statistics Ares Capital’s (ARCC) portfolio valuation and total assets stood at $8.8 billion and $9.1 billion, respectively, on September 30, 2016. The company’s corporate borrowers posted last-12-month EBITDA (earnings before interest, tax, depreciation, and amortization) growth of ~7% due to adequate growth and repayment capability. In 3Q16, Ares Capital’s credit statistics fell, with non-accrual […]

    By Robert Karr
  • uploads///Investments
    Earnings Report

    How Ares Capital’s Net Investments Could Rise in 4Q16

    Net investments to rise Ares Capital (ARCC) has seen subdued deployment over the past few quarters. The company’s investments have fallen since 1Q16, mainly due to higher exits. In 4Q16, Ares might see marginally higher net investments due to new programs and first- and second-lien lending. As of September 30, 2016, Ares Capital had a diversified […]

    By Robert Karr
  • uploads///Analyst Ratings
    Miscellaneous

    What Analyst Ratings Suggest about Prospect’s Performance

    Analysts’ ratings for Prospect Of the eight analysts covering Prospect Capital (PSEC), two rated it a “buy” or “strong buy” in January 2017. Three analysts, or ~37.5%, rated it a “hold.” One analyst rated Prospect an “underperform” and two analysts rated the company a “sell.” Prospect’s mean target price is $8.05 per share, implying a fall of 7.9% […]

    By Robert Karr
  • uploads///Estimates
    Earnings Report

    Ares Capital’s 4Q16 Quarterly Earnings: What to Expect

    Ares Capital (ARCC) is expected to post EPS (earnings per share) of $0.39 in 4Q16, compared with $0.40 in 4Q15 and $0.43 in the previous quarter.

    By Robert Karr
  • uploads///Valuation
    Earnings Report

    With Net Exits and Improved Yields, Prospect’s Valuation Is Fair

    Fiscal 2Q17 net exits Prospect Capital (PSEC) stock has risen 16% over the past three months and 16% over the past year. The company is currently trading near its 52-week high. The company saw net exits of $175.5 million in fiscal 2Q17, with higher exits from first-lien holdings. It saw lower leverage mainly due to higher exits, […]

    By Robert Karr
  • uploads///Interest income
    Earnings Report

    How Prospect Generated Strong Yields

    Generating strong yields Prospect Capital’s (PSEC) valuation gap has narrowed more than its industry peers’ and the broader market’s (SPX) (SPY), reflecting improved performance over the past few quarters. The company didn’t provide any further guidelines on possible spin-offs of profitable divisions in a bid to raise capital. If the stock rises, at least above the […]

    By Robert Karr
  • uploads///Portfolio total
    Earnings Report

    A Look at Prospect’s Net Exits and Focus on Retail Lending

    Exits higher than origination In fiscal 2Q17, Prospect Capital (PSEC) made portfolio investments of $470 million, which is a substantial rise over the $347 million invested in fiscal 1Q17. These funds were deployed in new and multiple follow-on investments. The company saw higher net exits than it did in the previous quarter, in line with […]

    By Robert Karr
  • uploads///EPS
    Earnings Report

    Prospect Capital Beats Estimates with Investments, Lower Expenses

    Prospect Capital (PSEC) reported fiscal 2Q17 earnings per share of $0.24 on February 8, 2017—higher than the analyst estimate of $0.22.

    By Robert Karr
  • uploads///NII
    Earnings Report

    Apollo Investment Sees Net Investments Turn Positive in Fiscal 3Q17

    In fiscal 3Q17, Apollo Investments (AINV) sold $17.1 million in investments and repaid $178.2 million.

    By Robert Karr
  • uploads///v
    Earnings Report

    Apollo Investment Valuations Fair amid Marginal Improvements

    In fiscal 3Q17, Apollo Investment (AINV) repurchased 2.3 million shares at a weighted average price per share of $5.90 for a total cost of $13.6 million.

    By Robert Karr
  • uploads///Analyst Ratings
    Miscellaneous

    How Analysts View Apollo Investment in 2017

    Four of the 15 analysts covering Apollo Investment (AINV) rated it a “buy” or “strong buy” in January 2017.

    By Robert Karr
  • uploads///eps
    Earnings Report

    Apollo Investment Earnings Show Signs of Stabilization in Fiscal 4Q17

    On February 6, 2017, Apollo Investment (AINV) posted earnings per share of $0.17 in fiscal 3Q17, beating analyst estimates of $0.16.

    By Robert Karr
  • uploads///EPS
    Company & Industry Overviews

    Prospect Capital’s Performance to Rise Marginally in 2017

    In this series, we’ll look at Prospect Capital’s expected performance, deployments, portfolio strategy, yields, balance sheet strength, dividends, and valuations.

    By Robert Karr
  • uploads///Realized
    Company & Industry Overviews

    Apollo Investments Sees Gains and Reversal on Portfolio

    Apollo Investment’s (AINV) realized and unrealized gains stood at $1.6 million in fiscal 2Q17 compared to realized losses of $42.6 million in fiscal 1Q16.

    By Robert Karr
  • uploads///Investment yields
    Company & Industry Overviews

    Apollo Investment’s Yields Stabilize, Reduced Exposure in Energy

    At the end of fiscal 2Q17, Apollo Investment’s (AINV) oil and gas investments represented 9.7% of its total portfolio, or $246 million.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    AINV’s Valuation Fair, Stock Can Rise on Earnings Surprise

    Currently, Apollo Investment (AINV) is trading at 8.5x on a one-year forward earnings basis. Its peers are trading at 8.8x.

    By Robert Karr
  • uploads///Net investment activity
    Company & Industry Overviews

    Apollo Investment’s Net Exits Trend Expected to Reverse in 2017

    Apollo Investment’s (AINV) total portfolio stood at ~$2.6 billion in fiscal 2Q17 compared to ~$3.2 billion in fiscal 2Q16.

    By Robert Karr
  • uploads///Estimates
    Company & Industry Overviews

    Apollo Investment Improved Bottom Line on Select Investments

    Apollo Investment (AINV) posted earnings per share of $0.18 in fiscal 2Q17, compared to analyst estimates of $0.17. In this series, we’ll study AINV’s performance, yields, capital deployment, portfolio, dividends, and valuations.

    By Robert Karr
  • uploads///Control
    Macroeconomic Analysis

    Originations, Retail Lending Are Key Drivers for Closed-End Funds

    Closed-end funds have seen subdued originations over the past few quarters. Quality originations commanding higher yields continue to drive closed-end funds’ stock performances.

    By Robert Karr
  • uploads///EPS Estimates
    Macroeconomic Analysis

    What to Expect from Prospect’s, Ares’s, BlackRock’s 4Q16 Earnings

    BlackRock Capital Investment (BKCC) is expected to report EPS (earnings per share) of $0.23 in 4Q16, compared to earlier estimates of $0.25.

    By Robert Karr
  • uploads///Capital Structure
    Macroeconomic Analysis

    Why Closed-End Funds Are Deploying Higher Leverages

    Closed-end funds have been deploying leverage in bids to take advantage of near-zero interest rates following the 2007 financial crisis.

    By Robert Karr
  • uploads///Portfolio
    Company & Industry Overviews

    Prospect’s, Ares’s Originations Rise, BlackRock’s, Apollo’s Fall

    The availability of credit has led to higher competition among investors and closed-end funds (PEX) seeking better investment options.

    By Robert Karr
  • uploads///Risk profile
    Company & Industry Overviews

    Apollo, BlackRock Target Less Risk, Unlike Ares, Prospect

    Over the past few years, closed-end funds (PSP) have deployed funds in middle market companies with better credit ratings.

    By Robert Karr
  • uploads///Investment income
    Macroeconomic Analysis

    Prospect’s and Ares’s Yields Fell, BlackRock’s Rose in 3Q16

    Closed-end funds (PEX) have been targeting higher yields by investing in second lien—or marginally risky—offerings or companies.

    By Robert Karr
  • uploads///Stock
    Macroeconomic Analysis

    Closed-End Funds Are Affected by Originations, Rates

    Closed-end managers deploy money in middle market companies engaged in businesses across sectors by raising capital through share issuances.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    Ares Capital Stock and Valuations Rise on Strong Performance

    Ares Capital (ARCC) stock has risen ~1.6% over the past six months. The company saw a strong performance in 3Q16 on higher deployment, yields, and lower expenses.

    By Robert Karr
  • uploads///Risk profile
    Company & Industry Overviews

    Ares Capital Second Lien Preference Evident in Portfolio Changes

    Ares Capital (ARCC) has consistently enhanced its exposure to second lien debt in a bid to generate higher yields.

    By Robert Karr
  • uploads///Yields
    Company & Industry Overviews

    Ares Capital’s Yields and Credit Statistics Fell in 3Q16

    Ares Capital’s (ARCC) portfolio totaled $8.8 billion at fair value as of September 30, 2016.

    By Robert Karr
  • uploads///Investments
    Company & Industry Overviews

    Ares Capital Enhances Originations in 3Q16

    By the end of September 2016, Ares Capital (ARCC) had a diversified portfolio of 215 companies totaling $8.8 billion at fair value.

    By Robert Karr
  • uploads///Estimates
    Company & Industry Overviews

    Ares Capital’s Performance Improves amid ACAS Acquisition News

    Ares Capital (ARCC) posted EPS (earnings per share) of $0.43, beating Wall Street analysts’ estimate of $0.39 in 3Q16.

    By Robert Karr
  • uploads///Portfolio total
    Earnings Report

    Prospect Could See Higher Originations in Fiscal 1Q17

    In fiscal 4Q16, Prospect Capital (PSEC) made $294 million in investments, a substantial rise compared to its investments of $23 million in fiscal 3Q16.

    By Robert Karr
  • uploads///Estimates
    Earnings Report

    What to Expect of Prospect Capital’s Earnings in Fiscal 1Q17

    Prospect Capital (PSEC) is expected to post earnings per share (or EPS) of $0.24 in fiscal 1Q17, a fall of $0.01 compared to estimates.

    By Robert Karr
  • uploads///Capital Structure
    Company & Industry Overviews

    Closed-End Funds Face Leverage Issues as Rate Hike Looms

    Ares Capital’s (ARCC) net DE (debt-to-equity) ratio decreased to 0.73x on June 30, 2016. Management had targeted a DE ratio of 0.65x–0.75x.

    By Robert Karr
  • uploads///Risk profile
    Company & Industry Overviews

    How Declining Yields Are Prompting Changes at Closed-End Funds

    Ares Capital (ARCC) has consistently increased its exposure to second lien senior secured debt. However, in the June quarter, second lien debt comprised only 24% of its new commitments.

    By Robert Karr
  • uploads///Portfolio total
    Company & Industry Overviews

    Volatility Continues to Cause Net Exits for Closed-End Funds

    Prospect Capital (PSEC) made portfolio investments of $294 million in the June quarter, a substantial rise from its investment of $23 million in the March quarter.

    By Robert Karr
  • uploads///Investment income
    Company & Industry Overviews

    Prospect, BlackRock Lead in Yields among Closed-End Funds

    Closed-end funds (PEX) have been boosting their yields by deploying capital in marginally risky asset classes or companies.

    By Robert Karr
  • uploads///Stock
    Company & Industry Overviews

    How an Interest Rate Hike Could Impact Closed-End Funds

    Closed-end asset managers (PSP) are expected to see higher interest costs on their leverage positions if there is a substantial hike by the Federal Reserve by the end of 2016. Portfolio yields are expected to remain stable, as the demand for quality borrowers is high among lenders.

    By Robert Karr
  • uploads///Estimates
    Earnings Report

    What to Expect of Prospect Capital’s Fiscal 4Q16 Earnings

    Prospect Capital (PSEC) stock has risen 14% over the past three months on its stable operating performance. It’s expected to post $1.03 in EPS for fiscal 2016.

    By Robert Karr
  • uploads///EPS Estimates
    Company & Industry Overviews

    What to Expect from Closed-End Fund Earnings and Consolidation in 2016

    Closed-end funds will be tested on a quality of their portfolios. Companies with higher leverage and lower grade investments will see discounted valuations.

    By Robert Karr
  • uploads///Interest income
    Company & Industry Overviews

    Will Subdued Interest Rates in 2016 Benefit Levered Closed-End Funds?

    Closed-end funds deploy leverage in order to generate returns for shareholders. The method works in tandem with interest rates when they’re low.

    By Robert Karr
  • uploads///Dividend
    Company & Industry Overviews

    Where Do Closed-End Funds Stand on Dividends in 2016?

    Closed-end funds tend to pay higher dividends, with dividend payout ratios in the range of 70%–90%.

    By Robert Karr
  • uploads///Untitled
    Macroeconomic Analysis

    Ares Capital’s Yields Are above 9% on Senior Secured Loan Program

    Ares Capital’s (ARCC) yields fell mainly due to the decline in the yield on subordinated certificates in the SSLP (senior secured loan program) and lower transaction flow in high yield markets.

    By Robert Karr
  • uploads///Portfolio
    Macroeconomic Analysis

    Prospect Capital’s Big Plans for Its Portfolio and Structured Lending

    Prospect Capital (PSEC) made portfolio investments of $692 million in fiscal 2Q16 (which ended December 31, 2015), up from $438 million in fiscal 1Q16.

    By Robert Karr
  • uploads///Interest income
    Macroeconomic Analysis

    How Subdued Interest Rates Could Continue to Benefit Levered Closed-Ended Funds

    Closed-ended funds deploy leverage in order to generate returns for shareholders. The method works in tandem with interest rates when they’re low.

    By Robert Karr
  • uploads///Stock
    Macroeconomic Analysis

    Prospect Capital Yielded 14%, Maintained Good Growth in 1Q16

    Prospect Capital reported that its September quarter earnings beat Wall Street analysts’ net income estimates of $0.25 with a posted net income of $0.26.

    By Robert Karr
  • uploads///Second lien investing
    Earnings Report

    Why Ares Capital Is Focusing on Second Lien Investing in 3Q15

    Over the past few quarters, Ares Capital (ARCC) has consistently increased its exposure to second lien senior secured debt. Second lien debt made up 21% of its new commitments in 3Q15.

    By Robert Karr
  • uploads///Yields
    Earnings Report

    Ares Capital’s 3Q15 Investment Performance, Senior Secured Loans

    Ares Capital’s (ARCC) portfolio totaled $8.7 billion at fair value as of September 30, 2015. Its total assets stood at $9.2 billion.

    By Robert Karr
  • uploads///Changing risk profile
    Earnings Report

    Why Ares Capital Is Increasing Its Focus on Second Lien Investing

    Ares Capital is targeting a minimum yield that’s 400 basis points higher on its second lien debt offerings than what it generates on first lien senior loans.

    By Robert Karr
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