ACAS, Allied drop after Reuters preview of earnings

Shares of hot stocks American Capital and Allied Capital fell and shares of some smaller players like Prospect Capital’s rose after a Aug. 3 Reuters PREVIEW of the Q2 results of U.S. buyout firms and lenders to small and mid-sized businesses. The Reuters article said that larger players like American Capital and Allied Capital would likely face sinking deal volumes and higher credit losses. But smaller players like Prospect Capital could report improved earnings as they have sufficient capital to deploy and may incur lower credit-related losses. ACAS shares fell as much as 6 percent while Allied fell more than 10 percent after the report. Prospect shares rose 5 percent while Ares Capital and Apollo Investment rose 3 and 4 percent.

Article Tags
Type: Reuters Best
Sectors: Equities
Regions: Americas
Countries: US
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