BDC Total Returns For 2019

Previous BDC Market Updates:

The following is a quick update that was previously provided to subscribers of Premium Reports along with target prices, dividend coverage and risk profile rankings, credit issues, earnings/dividend projections, quality of management, fee agreements, and my personal positions on all business development companies (“BDCs”) please see Deep Dive Reports.

BDCs will begin reporting results next week:

BDC Total Returns For 2019

It is important for investors to understand that BDC pricing can be volatile which is a good thing for investors that watch closely and take advantage of ‘oversold’ conditions measured using various methods including RSI as shown in the BDC Google Sheets.

This volatility drives very different returns depending on the time period used for measuring rather than using actual purchase prices.

I mostly cover stable predictable BDCs that hopefully require minimal trading for investors with the exception of buying more on the dips as I have done with my personal portfolio and discussed in the BDC Buzz Positions report. I will expand on this report to include my actual purchases as well as Suggested Portfolios with commentary.

FS KKR Capital (FSK) has been outperforming so far in 2019 due to being heavily discounted for the reasons discussed in the following article including an estimated decline in book value of 9.3% in Q4 2018:

Explanation of total returns: The Change in Price assumes you purchased the stock at the end of 2018. Dividends do not assume reinvestment and are calculated using the amounts paid (or accrued) divided by the purchase price.

 

For BDC target prices, dividend coverage and risk profile rankings, credit issues, earnings/dividend projections, quality of management, fee agreements, and my personal positions on all BDCs please see Premium Reports.

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