NEWT is now a digital business bank, with a charter.
I didn't like NEWT as a BDC and did not make any investments. As a
bank, I'm more comfortable with the risk/reward so a baby bond paying
8% with a maturity date in five years is more to my liking, especially
trading a little below par.
KBW had this to say on 9/6:
"We hosted an NDR with NEWT’s CEO/CFO Wednesday, with
discussions mostly staying high level as investors try to understand
the impact of the company’s conversion from a BDC to a bank.
The two quarters of results with a bank charter have demonstrated
the franchise's potential earnings power, which we believe could
improve over time as higher-cost funding is replaced with bank
deposits, assuming stable credit costs."