CIT Group Inc
Ares Capital Strengthened Its Senior Direct Loan Program in 4Q16
After ending its Senior Secured Loan Program (or SSLP) with GE Capital, Ares Capital (ARCC) is successfully building up a new senior direct lending program (or SDLP).
Prospect’s Leverage Falls Due to Net Exits in Fiscal 2Q17
Leverage declines Prospect Capital (PSEC) has been operating at higher leverage to take advantage of low rates. The company saw higher net exits in fiscal 2Q17, which led to lower leverage. Notably, Prospect’s fiscal 2Q17 net debt-to-equity ratio declined to 76.2% from its fiscal 2Q16 debt-to-equity ratio of 80.2% and 77.4% in the two previous quarters. As […]
Prospect Deploying towards Real Estate, Structured Investments
Controlled, online lending Prospect Capital’s (PSEC) controlled investments in fiscal 2Q17 rose to 31.5% of its total portfolio, compared with 30.6% in the previous quarter. The company targets selective exits to raise capital when it has found attractive pricing. In fiscal 2Q17, it saw net exits of $175.5 million, compared with net investments of $232.8 million […]
Prospect Capital’s Higher Leverage Could Impact Returns in 2017
Since the Fed increased interest rates in December 2016, Prospect Capital (PSEC) could see some pressure on its cost of capital in 2017.
Prospect Capital Focusing on Structured, Controlled Investments
Prospect Capital (PSEC) has deployed money for equity investments and majority stake when there’s an opportunity for an investment in growing businesses.
Ares Capital Expands SDLP Portfolio, but SSLP Still Dominates
After ending the senior secured loan program with GE Capital, Ares Capital (ARCC) is successfully building up a new senior direct lending program (or SDLP).
Prospect’s Leverage Rises on Higher Origination in Fiscal 1Q17
Prospect Capital has been operating at higher leverage to take advantage of low rates. But the Fed is expected to raise interest rates in calendar 4Q16.
Prospect Capital’s Controlled Investments, Structured Credit Expansion
Prospect Capital’s (PSEC) controlled investments in fiscal 1Q17 rose to 30.6% of its total portfolio, as compared to 29.7% in the previous quarter.
PSEC Reduces Leverage amid Low Originations, Potential Rate Hike
Prospect Capital (PSEC) has used the low interest rate environment to its advantage by deploying higher leverage over the past couple of years.
Exploring PSEC’s Online Lending and Structured Credit Investments
Prospect Capital has seen strong growth in originations through its online platform. The company has entered into the online lending business with National Property REIT.
David Einhorn Included CIT Group on His Cheap Stock List
CIT Group is currently trading at $36.10. Its 52-week high is $44.95, and its 52-week low is $25.19.
Prospect Capitalizes on Its Controlled and Structured Credit in 4Q
Prospect Capital’s (PSEC) controlled investments in fiscal 4Q16 declined to 29.7% of its total portfolio, as compared to 33.3% in the previous quarter.
Prospect to Deploy More in Control, Online, Structured in 4Q16
Prospect Capital’s (PSEC) controlled investments in the March quarter stood at 33.3% of its total portfolio compared to 32.5% in the previous quarter.
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.
How Closed-End Funds Are Increasing Yields on a Given Risk
Closed-end funds (PEX) have been boosting yields by deploying capital in marginally risky asset classes or companies.
Ares Capital Increases Prudence in Capital Structure and Lowers Costs
Ares Capital’s (ARCC) net DE (debt-to-equity) ratio decreased to 0.77x as of March 31, 2016, marginally above the 0.65x–0.75x the management had targeted.
How Will New Senior Direct Lending Program Pan Out for Ares Capital?
Ares Capital’s (ARCC) SDLP will underwrite and hold first lien loans including stretch senior and unitranche loans that are originated by Ares and Varagon.
PSEC Cashes In on Its Controlled and Structured Credit Strategy
Prospect Capital’s (PSEC) controlled investments in fiscal 3Q16 stood at 33.3% of its total portfolio compared to 32.5% in the previous quarter.
Ares Capital Has Built Foundation for Senior Secured Loan Program
Ares Capital has established a senior direct lending program (or SDLP) under a joint venture with Varagon Capital Partners and AIG (AIG).
Why Ares Capital Is Deploying Higher Leverage
Ares Capital’s (ARCC) net DE (debt-to-equity) ratio increased to 0.79x as of December 31, 2015, above the 0.65x–0.75x target set by the management.
The Secret to Prospect Capital’s Successful Leveraging
Prospect Capital is deploying higher leverage to take advantage of low interest rates. Its fiscal 2Q16 net debt-to-equity ratio rose marginally to 77.9%.
Prospect Capital: The Effect of Slow Real Estate and Lower Wage Growth
Prospect Capital (PSEC) has a positive outlook for consumer credit throughout 2016 on the back of falling unemployment rates and commodity prices.
BlackRock, Prospect, and Ares: What to Expect from Their Earnings
BlackRock Capital Investment (BKCC) is expected to post $0.26 earnings per share in 1Q16, which would represent growth of 5%.
PSEC Is Leveraging Balance Sheet to Earn Spreads on Low-Cost Debt
Prospect Capital (PSEC) suspended its market equity issuances for the indefinite future due to unattractive share price levels. This reduction in equity and asset growth has resulted in lower net origination volumes than in previous quarters.
PSEC’s Strategy: Online Lending, Real Estate, Control Investments
Prospect Capital (PSEC) is deploying investments for the online lending industry, with a focus on near-prime, prime, and subprime consumers as well as small business borrowers.
High-Yield Bonds and You in 2016
High-yield bonds, also known as Junk bonds, have an iffy repayment ability, even if they are at the higher end of the junk rating scale.
VWEHX Is a Safe Fund If Liquidity Temporarily Dries Up
VWEHX looks like one of the safest funds to be around in case liquidity dries up temporarily. The fund mainly avoided investing in the deep end of the junk category.
Ares Capital Stock Benefits from a Strong Balance Sheet
Ares Capital had cash, revolving lines of credit, and small business administration, or SBA, debentures of $2.4 billion as of June 30, 2015, for investments.
Ares Capital’s Plan to Deal with GE Capital Divestiture
Since the announcement of General Electric’s divestiture, Ares Capital has focused on how to best capitalize on the exit of GE Capital, one of the largest players in the market.
U-6 labor: Underemployment declines, supporting stocks and bonds
This article considers the big picture of overall labor conditions and the implications for equity and fixed income markets.
Unemployment and discouraged workers: The improvement continues
This article considers the halfway mark improvement in the U-4 labor data and the implication for fixed income investors.
4 million Baby Boomers have retired since 2008: Effect on stocks
This article further considers the growth in “unavailable workers” and the implications for investors in the USA.
Bear strategy: Profit from rising rates with fixed income ETFs
Investors could consider hedging their short-term duration risk (HYG: 3.98 years, JNK: 4.20 years) with a short position in longer-dated bonds.
Why global growth is driving long-dated bond yields higher
This article considers the improving real GDP growth rate in the U.S. economy and the implications for fixed income investors.