While it is great that NAV increased, it is disappointing, to put it mildly, that shareholders equity actually DECLINED. Note that they do not provide Q1 metrics to compare to in the press release, else you would have seen the equity decrease from $5669M Q! to $5579M Q2. Overall, the company lost value. Will this result in a smaller buyback in Q3?
I don't know about a smaller buy back, tactically that may be correct if opportunities arise. We are about to start to see the world turn back toward reality. 1 The fed cannot control things like it has indefinitely. RATES WILL RISE. 2 Initially as rates move up liquidity will still be there but at some point the question of viable returns and liquidity in finance then drops. ACAS as far as I know is the only BDC with the balance sheet to be run-able then. Then ACAS can really start to grow and make turns. 3 Inflation will raise its head and rates again will have to rise. Again another ACAS benefit.
All I am saying (is give peace a chance) is wait a little while longer. Reality will return and ACAS will benefit. Cheap easily accessible money is bad for BDCs. Many other BDCs have moved to finance and they will have some issues with the higher rates and their ability to finance equity plays.
I was however disappointed at the results. But I also know the environment is not the best. I can only hope a return to normal comes before large amounts of quality people rotate out of the business.