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BlackRock BDC Slashes NAV

Observant1
in Other Investing
"In late January, BlackRock TCP Capital—a business-development company somewhat akin
to a closed-end fund—reported that it would be slashing the net asset value of its shares
by 19% for the fourth quarter of 2025."

"The size of the write-down and the ensuing selloff of the BDC’s publicly traded shares
captured some private credit burning trees but missed the forest fire: financial leverage."

"BlackRock TCP Capital’s fourth quarter is a reminder that when leverage, borrower fragility,
and equity exposure intersect, the downside can be steep—well before presentations about
'defensive positioning' and 'asset‑backed resilience' have time to age."

https://www.morningstar.com/bonds/blackrock-tcp-capitals-tumble-was-more-than-just-private-credit-risk

Comments

  • Observant1
    edited January 30
    I wonder if BlackRock used their renowned risk management system known as Aladdin Risk.
    https://www.blackrock.com/aladdin/products/aladdin-risk
  • hank
    edited January 30
    Observant1 said:

    I wonder if BlackRock used their renowned risk management system known as Aladdin Risk.

    "Aladdin Risk is the market-tested analytics engine of our tech--available as a stand-alone offering or as part of the Aladdin platform. It combines sophisticated risk analytics with quality-controlled data and highly scalable processing capabilities. ... Analyze risk and returns through one holistic layout, with flexibility to choose the most appropriate risk factors and models for the users' specific circumstances."

    No thanks. I'll stick to "seat of the pants" risk analytics for my investing. :)
  • MarkMark
    Good plan @hank
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