Out Fox The $treet

While Prospect Capital Corporation ( PSEC ) continues to report record originations, the company is failing to pull those numbers to the net investment income (NII) line. Not only did the last quarter show essentially flat NII, but also it occurred on a substantially higher share base. Prospect Capital is a leading provider of flexible private debt and equity capital to sponsor-owned and non-sponsor-owned middle market companies in the United States and Canada. It trades as a closed-end investment company that has elected to be treated as a business development company ( BDC ) under the Investment Company Act of 1940. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

After the trading week closed on Thursday, March 28, Prospect Capital Corporation ( PSEC ) made a surprising announcement that the company had originated a record $800 million during the March quarter. The surprise comes after the company claimed in early February that the originations for Q1 were a mediocre $141 million almost halfway into the quarter. The market didn't actually expect much following the year-end push to exit businesses to beat the tax deadline. Prospect Capital is a leading provider of flexible private debt and equity capital to sponsor-owned and non-sponsor-owned middle market companies in the United States and Canada. It trades as a closed-end investment company that has elected to be treated as a business development company (BDC) under the Investment Company Act of 1940. The origination pace, while bullish, does bring into play a previous concern about another equity raise, as a surge in deals were the only reason equity would be needed. C...

With the market craving yields, it is amazing that several business development stocks can still yield around 10%. Both Solar Capital ( SLRC ) and TICC Capital ( TICC ) have had yields around 10% for a considerable amount of time. While Prospect Capital ( PSEC ) remains a favorite (see Prospect Capital: Prospecting For Even Higher Dividends ) with a yield of nearly 12%, the question is whether either of these less followed BDCs provide a better investment? Solar Capital The company operates as a closed-end investment company that invests primarily in leveraged, middle market companies in the form of senior secured loans, mezzanine loans, and equity securities. The stock has a market cap of $1.1B and currently yields 9.7%. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.