HTGC Projections Update: Watch List & New Comparison Charts
Weekly Updates – Each week we provide quick updates for the sector, including significant events for each BDC along with upcoming earnings, reporting, and ex-dividend dates. Also, we provide a list of the best-priced opportunities along with oversold/overbought conditions, and what to look for in the coming week.
Weekly General Updates or Comparison Reports – A series of updates discussing 'Building a BDC Portfolio', suggested pricing and limit orders, expense/return ratios, interest rates, leverage, Investment Grade BDC Bonds/Notes, portfolio mix, dividend coverage, and risk profiles.
Deep Dive Projection Reports – Detailed reports on individual BDCs each week prioritized by focusing on buying opportunities and potential issues such as changes in portfolio credit quality and/or dividend coverage (usually related). This should help subscribers put together a shopping list ready for the next general market pullback.
Please use the following link to access all the recently updated reports, including side-by-side comparison reports and individual company updates:
HTGC Quick Update:
We are currently updating the Deep Dive reports for the best-priced BDCs starting with HTGC currently yielding over 16%.
Also discussed are its Investment Grade Notes/Baby Bond with updated projected asset/interest coverage ratios. I will probably purchase the 2027 note (current YTM of 8.1%).
We have included new comparison charts/tables for some of the more important aspects when comparing the quality of BDCs, such as dividend coverage (historical and projected), leverage, expense ratios, watch lists, and non-accruals.
Also, there are many other changes coming and these reports will continue to improve over the next few weeks.
There are some benefits to the closure of SVB (discussed below) as it was a competitor in the VC-tech lending space.
HTGC is a 'Strong Buy' at these depressed prices. HTGC is already one of my larger positions, but there is a chance that I will opportunistically purchase additional shares (as mentioned below).
As we enter an environment of increased recessionary concerns, these reports will continue to focus on risk profiles, including any changes to watch list investments and the potential impact on NAV using various default and recovery rates as we have done for HTGC.
Total yield takes into account the previously announced $0.32 per share of supplemental dividends for 2023 (compared to $0.60 per share paid in 2022).
For real-time pricing and recommendations, please use the BDC Google Sheets.