Monday, July 28, 2014

Survey Results for Q3 2014

Thank you for taking the time to fill out the survey and I will be using the feedback to add content to the newsletter and for upcoming articles on Seeking Alpha.  I will probably use similar surveys in the future to prioritize information/efforts to BDC investors.

I will continue to update these results and include a summary of the write in answers for the following questions so please bookmark this page and visit later this week.








Saturday, July 26, 2014

Tuesday, June 17, 2014

TICC Capital (TICC) Rsearch




Articles for Triangle Capital (TCAP):

 

TICC Capital (TICC) is a component in my ‘High-Yield’ BDC portfolio and is one of the older BDCs that I follow.It has been near the average of my rankings for a while with a riskier than average profile and higher than average returns.  TICC has one key advantage over the other BDCs which is its income incentive fee structure that is very favorable to investors in a rising rate environment and is based on U.S. Treasury rates that rose by year end.  This will reduce the fees paid by the company starting in 2014 and I believe these cost savings have not been factored into projected EPS or pricing.  Most of its investments are at variable rates and once rates rise higher than 100 basis points TICC should begin to see higher income.

 

I believe its CLO investments along with higher than average use of leverage makes it one of the riskier BDCs and it should be priced accordingly.


The company will most likely issue new shares this quarter and there is a possibility of increased dividends later in the year as it benefits from reduced fees and full quarter of benefit from CLO investments.