better business buruea recovery icq search and recovery

Assuming assets are valued reasonably, sooner or later they will generate income even if they are currently underperforming. I tend to put a fair amount of emphasis on book value because assets can generally be redeployed at fairly short time intervals in this industry. This change in asset quality, as well as the reduction in leverage has put these companies in a better position to weather the storm of another downturn than the position they were in in 2008Īfter each company's name, I provide the stock symbol, Thursday's closing price, the current yield, the price/book ratio, and the highest price in the last 52 weeks. The general trend has been to migrate capital from equity, preferred equity and subordinated debt investments to senior secured debt and senior debt instrument investments. Most of these companies have succeeded in reducing leverage and gradually improving the quality of their assets.

BDCs ran into problems because the value of their debt and equity holdings declined and this, in turn, lead to leverage issues and nasty disputes with lenders. This part will deal with BDCs which ran into series difficulties during the 2008-09 Panic and have been in the process of recovery. Readers should be aware that virtually all of these companies are registered investment companies (RICs) they avoid corporate income taxes but are generally required to pay out 90% of earnings as dividends and that dividends are generally treated as ordinary income to the shareholders. This series will provide readers with a review of the Business Development Company (BDC) sector and will attempt to cover all companies in the sector.

Better business buruea recovery icq search and recovery