...Meaningful 4Q14 Valuation Marks: Rated Business Development Companies (BDCs) were carrying their oil and gas investments, as defined by Fitch Ratings, at a 7.3% discount to cost at Dec. 31, 2014, compared to a 1.6% discount to cost at Sept. 30, 2014. The valuation decline was driven by market movements, resulting from depressed oil prices and deteriorating credit profiles of certain investments. Energy portfolios, more broadly, were marked at a 6.2% discount to cost at YE14 compared to a 1.3% discount in the prior quarter. Bigger Impacts for Some: PennantPark Investment Corporation (Pennant) and Apollo Investment Corporation (Apollo) remained the most exposed to the energy sector, according to Fitch classifications, with investments accounting for 21.4% and 20.6% of portfolios at Dec. 31, 2014, respectively. Pennant and Apollo recognized unrealized depreciation of $53.2m and $74.7m, respectively, in the December quarter, linked largely to marks on energy investments. More Senior Investment...
