BDC Weekly Review: Keep An Eye On Valuation-Adjusted Performance
We take a look at the action in business development companies through the third week of August and highlight some of the key themes we are watching. BDCs remain attractive due to sector-wide valuations that are well below historic averages, providing a margin of safety and boosting earnings yield for investors. Valuation-adjusted total NAV return is a key metric—investors should focus on returns relative to valuation, not just headline numbers or wide discounts.
Main Street Capital: I Consider It The Best BDC To Hold
Main Street Capital remains my top BDC due to its resilience, internally-managed structure, and consistent dividend growth, but I reiterate a 'hold' rating. MAIN's distributable NII and NAV continue to grow despite sector headwinds, thanks to its more optimal debt structure and cost advantages. The premium to NAV is high—over 100%—making new purchases unattractive, but this premium enables MAIN to raise cheap capital and drive long-term value.
BDC Weekly Review: BDC Earnings Deluge
We take a look at the action in business development companies through the second week of August and highlight some of the key themes we are watching. BDCs traded flat this week, with earnings reports driving sector movement; valuations remain attractive versus historical averages. Recent earnings highlight strong performance from FDUS and NCDL.
Crescent Capital BDC: Best Deep Value Play In The BDC Sector
Crescent Capital BDC, Inc.'s Q2 results showed improved net investment income per share, outperforming peers and maintaining strong base dividend coverage at 110%, above sector average. Despite a higher debt-to-equity ratio and limited equity upside, CCAP's fundamentals are in line with or better than the sector average. Yet, the stock trades at a massive discount to NAV (~21%), far steeper than the sector average, creating an attractive risk-reward profile.
Barings BDC: Remains Resilient But Not A Buy Yet
Barings BDC's portfolio is heavily weighted toward first lien loans, providing a strong foundation for risk management and income stability. BBDC offers a starting dividend yield of 10.7%, which is supported by net investment income at a coverage rate of 107%. Q2 earnings highlight a stable risk profile. Earnings remain on par with prior quarters and financials are healthy.
Chicago Atlantic BDC, Inc. (LIEN) Q2 2025 Earnings Call Transcript
Chicago Atlantic BDC, Inc. (NASDAQ:LIEN ) Q2 2025 Earnings Conference Call August 14, 2025 9:00 AM ET Company Participants Bernardino M Colonna - President Peter S. Sack - Chief Executive Officer Thomas Napoleon Geoffroy - Interim Chief Financial Officer Tripp Sullivan - Corporate Participant Conference Call Participants Operator Good day, and welcome to the Chicago Atlantic BDC, Inc. Second Quarter 2025 Earnings Call.
Kayne Anderson BDC: Q1 Earnings Reveal The Dividend Isn't As Safe
I maintain my hold rating on KBDC due to weaker earnings and questionable dividend coverage despite a high yield and portfolio resilience. KBDC's portfolio remains defensively structured with low non-accruals, but rising PIK interest income signals borrower stress in a high-rate environment. Earnings and NAV have stagnated, expenses are rising, and capital deployment into new investments is at a twelve-month low, limiting growth prospects.
BDC Weekly Review: Tight Spreads Keep A Lid On Net Income
We take a look at the action in business development companies through the first week of August and highlight some of the key themes we are watching. BDCs underperformed despite strong early earnings, with sector valuations dipping below historical averages. Tight lending spreads continue to pressure BDC net income.
Blue Owl Capital: Don't Underestimate This Strong BDC
Blue Owl Capital stock remains a 'buy' due to its strong performance and future potential for both new and existing shareholders. The recent Q2 2025 financial report highlights improved portfolio quality and resilience after a successful merger. Blue Owl Capital has expanded its portfolio size, increased diversification, and enhanced credit quality with more highly rated investments.
Palmer Square Capital BDC: Q2 Earnings Indicate Limited Positive Catalysts (Rating Downgrade)
I am downgrading Palmer Square Capital BDC to a more cautious stance, due to persistent NAV declines, dividend cuts, and heavy reliance on debt for growth. PSBD's portfolio is defensively structured with first lien senior secured loans, but high rates are stressing borrowers and limiting new investment activity. The stock trades at a significant discount to NAV, reflecting real operational challenges rather than a value opportunity, with little near-term turnaround expected.
Golub Capital BDC: I'm Not Buying Anymore
I am downgrading Golub Capital BDC to 'hold' due to declining net investment income and the risk of a potential dividend cut. While Q3 2025 earnings beat expectations, income barely covers the dividend, and further rate cuts could pressure payouts and stock price. Positives include low non-accruals and improved internal performance ratings, suggesting better credit quality and future deal flow opportunities.
Belden Inc. (BDC) Q2 2025 Earnings Call Transcript
Belden Inc. (NYSE:BDC ) Q2 2025 Earnings Conference Call July 31, 2025 8:30 AM ET Company Participants Aaron Reddington - Vice President of Investor Relations Ashish Chand - President, CEO & Director Jeremy E. Parks - Senior VP of Finance & CFO Conference Call Participants Christopher M.
