← Capital Southwest overview

Capital Southwest vs Ares Capital: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Capital Southwest Corporation (CSWC)

Q3 2026
▲3

CSWC grows funding firepower as earnings and credit quality hold up

  • Strong quarter, bigger dividend, growing portfolio Capital Southwest reported $0.57 per share of net investment income and raised its monthly dividend to $0.58 plus a $0.06 extra. It added $222 million of new loans, pushing its portfolio to $2 billion, up 24% from a year earlier. More income and dividends support the stock price.

    This is the core earnings and dividend news that directly supports CSWC's price.

  • Cheaper, larger credit line cuts borrowing costs CSWC expanded its revolving credit line to $595 million from $510 million and cut the interest spread it pays to 2.00% from 2.15%. That lowers funding costs and extends the facility to 2031. Cheaper borrowing leaves more profit for shareholders, a modest positive for the stock.

    Lower funding costs directly improve the profit CSWC earns on its loans.

  • $350 million bond sale swaps revolver debt for fixed 6.75% notes CSWC sold $350 million of 6.750% notes due 2031 to repay part of its credit line. This locks in fixed funding and supports new lending, but the coupon is higher than the revolver's roughly 6% cost, so it slightly raises interest expense. Net effect is broadly neutral.

    The bond sale changes CSWC's funding mix and cost, a real but two-sided price driver.

  • SBA raises SBIC II leverage limit to $250 million The Small Business Administration let CSWC's SBIC II fund borrow up to $250 million, up from $175 million. This gives CSWC more cheap government-backed money to lend to smaller companies. More lending capacity can grow earnings over time, supporting the stock price.

    Extra SBA-backed leverage expands CSWC's low-cost funding and future earnings power.

August 2026
▲3

CSWC grows funding firepower as earnings and credit quality hold up

  • Strong quarter, bigger dividend, growing portfolio Capital Southwest reported $0.57 per share of net investment income and raised its monthly dividend to $0.58 plus a $0.06 extra. It added $222 million of new loans, pushing its portfolio to $2 billion, up 24% from a year earlier. More income and dividends support the stock price.

    This is the core earnings and dividend news that directly supports CSWC's price.

  • Cheaper, larger credit line cuts borrowing costs CSWC expanded its revolving credit line to $595 million from $510 million and cut the interest spread it pays to 2.00% from 2.15%. That lowers funding costs and extends the facility to 2031. Cheaper borrowing leaves more profit for shareholders, a modest positive for the stock.

    Lower funding costs directly improve the profit CSWC earns on its loans.

  • $350 million bond sale swaps revolver debt for fixed 6.75% notes CSWC sold $350 million of 6.750% notes due 2031 to repay part of its credit line. This locks in fixed funding and supports new lending, but the coupon is higher than the revolver's roughly 6% cost, so it slightly raises interest expense. Net effect is broadly neutral.

    The bond sale changes CSWC's funding mix and cost, a real but two-sided price driver.

  • SBA raises SBIC II leverage limit to $250 million The Small Business Administration let CSWC's SBIC II fund borrow up to $250 million, up from $175 million. This gives CSWC more cheap government-backed money to lend to smaller companies. More lending capacity can grow earnings over time, supporting the stock price.

    Extra SBA-backed leverage expands CSWC's low-cost funding and future earnings power.

Latest
▲3

CSWC grows funding firepower as earnings and credit quality hold up

  • Strong quarter, bigger dividend, growing portfolio Capital Southwest reported $0.57 per share of net investment income and raised its monthly dividend to $0.58 plus a $0.06 extra. It added $222 million of new loans, pushing its portfolio to $2 billion, up 24% from a year earlier. More income and dividends support the stock price.

    This is the core earnings and dividend news that directly supports CSWC's price.

  • Cheaper, larger credit line cuts borrowing costs CSWC expanded its revolving credit line to $595 million from $510 million and cut the interest spread it pays to 2.00% from 2.15%. That lowers funding costs and extends the facility to 2031. Cheaper borrowing leaves more profit for shareholders, a modest positive for the stock.

    Lower funding costs directly improve the profit CSWC earns on its loans.

  • $350 million bond sale swaps revolver debt for fixed 6.75% notes CSWC sold $350 million of 6.750% notes due 2031 to repay part of its credit line. This locks in fixed funding and supports new lending, but the coupon is higher than the revolver's roughly 6% cost, so it slightly raises interest expense. Net effect is broadly neutral.

    The bond sale changes CSWC's funding mix and cost, a real but two-sided price driver.

  • SBA raises SBIC II leverage limit to $250 million The Small Business Administration let CSWC's SBIC II fund borrow up to $250 million, up from $175 million. This gives CSWC more cheap government-backed money to lend to smaller companies. More lending capacity can grow earnings over time, supporting the stock price.

    Extra SBA-backed leverage expands CSWC's low-cost funding and future earnings power.

Ares Capital Corporation (ARCC)

Q3 2026
▼3

Private credit stress tests ARCC's dividend as defaults rise

  • Rising non-accruals and dividend coverage gap Loans not paying interest rose to 2.4% of the portfolio from 1.8%, and core earnings of $0.47 fell short of the $0.48 dividend. That makes the payout less safe and pressures ARCC's price.

    This is the core new credit-quality deterioration directly threatening ARCC's dividend.

  • Record private credit defaults and sector dividend cuts Private credit defaults hit a record 6%, and peer Blue Owl cut its dividend. This raises fears ARCC may follow, weighing on its shares even though ARCC kept its own dividend steady.

    Sector-wide default record and a peer dividend cut are new negative signals for ARCC's payout.

  • Falling loan rates squeeze income ARCC's average loan rate dropped to 10.3% from higher levels, and peers show similar declines. Lower rates mean less interest income, making it harder to cover the dividend and pressuring the stock.

    Declining portfolio yield is a new earnings headwind for ARCC.

  • New $750M bond issue at higher cost ARCC priced $750 million of 6.250% notes due 2033 to repay bank debt. It locks in higher borrowing costs but extends maturities and keeps liquidity strong, so the effect on the stock is mixed.

    This new financing event affects ARCC's capital costs and liquidity.

August 2026
▼3

Private credit stress tests ARCC's dividend as defaults rise

  • Rising non-accruals and dividend coverage gap Loans not paying interest rose to 2.4% of the portfolio from 1.8%, and core earnings of $0.47 fell short of the $0.48 dividend. That makes the payout less safe and pressures ARCC's price.

    This is the core new credit-quality deterioration directly threatening ARCC's dividend.

  • Record private credit defaults and sector dividend cuts Private credit defaults hit a record 6%, and peer Blue Owl cut its dividend. This raises fears ARCC may follow, weighing on its shares even though ARCC kept its own dividend steady.

    Sector-wide default record and a peer dividend cut are new negative signals for ARCC's payout.

  • Falling loan rates squeeze income ARCC's average loan rate dropped to 10.3% from higher levels, and peers show similar declines. Lower rates mean less interest income, making it harder to cover the dividend and pressuring the stock.

    Declining portfolio yield is a new earnings headwind for ARCC.

  • New $750M bond issue at higher cost ARCC priced $750 million of 6.250% notes due 2033 to repay bank debt. It locks in higher borrowing costs but extends maturities and keeps liquidity strong, so the effect on the stock is mixed.

    This new financing event affects ARCC's capital costs and liquidity.

Latest
▼3

Private credit stress tests ARCC's dividend as defaults rise

  • Rising non-accruals and dividend coverage gap Loans not paying interest rose to 2.4% of the portfolio from 1.8%, and core earnings of $0.47 fell short of the $0.48 dividend. That makes the payout less safe and pressures ARCC's price.

    This is the core new credit-quality deterioration directly threatening ARCC's dividend.

  • Record private credit defaults and sector dividend cuts Private credit defaults hit a record 6%, and peer Blue Owl cut its dividend. This raises fears ARCC may follow, weighing on its shares even though ARCC kept its own dividend steady.

    Sector-wide default record and a peer dividend cut are new negative signals for ARCC's payout.

  • Falling loan rates squeeze income ARCC's average loan rate dropped to 10.3% from higher levels, and peers show similar declines. Lower rates mean less interest income, making it harder to cover the dividend and pressuring the stock.

    Declining portfolio yield is a new earnings headwind for ARCC.

  • New $750M bond issue at higher cost ARCC priced $750 million of 6.250% notes due 2033 to repay bank debt. It locks in higher borrowing costs but extends maturities and keeps liquidity strong, so the effect on the stock is mixed.

    This new financing event affects ARCC's capital costs and liquidity.