🚀 Sign up Free for Public Company Valuation & Insights!
Sign up for free to get access to the best public company valuation and insights. Get started today and unlock the potential of your investments!
Sign up free Video Highlights
Stellus Capital Investment
-7.33%
Financial services / Business development company
At a Glance | Core Facts | Company Due Diligence: | Industry Due Diligence: | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web1. Interest Rate Risk: Stellus Capital Investment Corp’s investments are exposed to changes in market interest rates. Moreover, the company’s investments are predominantly floating-rate loans, which are typically repriced quarterly, making Stellus exposed to any sudden increases or decreases in market rates.
2. Credit Risk: Stellus Capital Investment Corp is exposed to the credit risk of the borrowers of its investments. If the borrower of a loan is unable to meet its repayment obligations, Stellus would be forced to take a loss on its investment.
3. Leverage Risk: Stellus Capital Investment Corp relies heavily on leverage to finance its investments. Leverage increases the company's overall risk exposure as it is more prone to losses in the event of market downturns or performance of its investments.
4. Liquidity Risk: Stellus Capital Investment Corp primarily invests in illiquid investments, meaning that it may not be able to convert its investments into cash when it wants. This could lead to cash flow issues for the company and a loss of potential profits from portfolio investments.
Wait! There's more — sign up for free or log in