Lead Left Interview – Jonathan Bock

This week we speak with Jonathan Bock, CFA, Senior Analyst, Wells Fargo Securities. Jonathan is one of the foremost experts on BDCs in the banking industry / research community. The BDC Almanac (his primer) and the Wells Fargo BDC Scorecard (his quarterly) are the most read research reports in the market today. 

The Lead Left: Jonathan, CLOs are getting pounded by regulators. Are BDCs under similar pressures?

Jonathan Bock: No. The BDC space is not subjected to risk retention / Volker etc. In fact, we continue to see growth in this space as a result of increased regulation on commercial banks and CLOs. Institutional demand in this space continues to grow as well-just based on the amount of calls I get from large pensions, mutual funds, and insurance companies.

TLL: What’s accounting for BDCs’ popularity? 

JB: Even the stock prices have encountered a bit of short-term volatility (much like the markets), we still continue to see growth / interest pick up in the space. On the investment side, one of the keys is that BDCs