Stable 9.5% Yield And Shareholder Approval To Increase Leverage

Q2 2018 BDC Reporting
Business development companies ("BDCs") have begun reporting June 30, 2018, results including and I will likely be making changes to my personal portfolio. Please see my recent articles on Hercules Capital (HTGC), THL Credit (TCRD), and Ares Capital (ARCC), discussing potential changes to dividends and book value per share:
HTGC: Upcoming 3% To 4% Book Value Growth For This 9.2% Yielding BDC TCRD: 13.2% Yield At Risk Of Upcoming Dividend Cut ARCC: 9% Dividend Yield Positioned For Rising Rates And Upcoming Special Dividend

As mentioned in the articles linked above, I have been purchasing additional shares of higher quality BDCs, especially given the oversold conditions driving higher yields. Many BDCs have been rallying over the last five months, likely for the reasons discussed in this and previous articles including:
Rising interest rates and portfolio yields Poorly managed BDCs taken over and turned around Recent insider purchases Relaxed regulations and tax reform I recently purchased additional shares of New Mountain Finance (NMFC) along with various insiders as shown in the following chart and table below:

“I and other members of New Mountain continue to be very large owners of our stock with aggregate ownership of 9.6 million shares, approximately 13% of total shares outstanding, an increase of over 0.5 million shares over last quarter.”
Source: NMFC Q2 2018 Earnings Call Transcript
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