Oaktree Specialty Lending: Staying Away From This BDC For The Remainder Of 2025
Oaktree Specialty Lending (OCSL) faces vulnerabilities including weak dividend coverage, portfolio concentration, and negative impacts from tariffs. OCSL's portfolio is heavily concentrated in Software & Services, and rising non-accruals indicate worsening borrower performance, exacerbated by high interest rates. Despite trading at a significant discount to NAV, OCSL's declining NAV and increasing non-accruals suggest ongoing financial instability and potential further downside in 2025.
BDC Weekly Review: BDCs Are Taking Advantage Of Wider Spreads
We take a look at the action in business development companies through the fourth week of April and highlight some of the key themes we are watching. BDCs saw a 3% total return last week, with the median valuation improving from a 20% to a 10% discount. Rising credit spreads present both challenges and opportunities for BDCs, enabling them to reinvest at wider spreads due to high portfolio turnover.
Belden Inc. (BDC) Q1 2025 Earnings Call Transcript
Belden Inc. (NYSE:BDC ) Q1 2025 Earnings Conference Call May 1, 2025 8:30 AM ET Company Participants Aaron Reddington - VP, IR Ashish Chand - President and CEO Jeremy Parks - SVP and CFO Conference Call Participants William Stein - Truist Securities David Williams - Benchmark Aman Gupta - Goldman Sachs Rob Jamieson - Vertical Research Partners Steven Fox - Fox Advisors Operator Ladies and gentlemen, thank you for standing by. Welcome to this morning's Belden Reports First Quarter 2025 Results.
Belden (BDC) Tops Q1 Earnings and Revenue Estimates
Belden (BDC) came out with quarterly earnings of $1.60 per share, beating the Zacks Consensus Estimate of $1.48 per share. This compares to earnings of $1.24 per share a year ago.
Barings BDC: Not The Best Investment Despite The 11.7% Dividend Yield
BBDC provides investors with a 12% dividend yield, but has underperformed compared to other BDCs, which results in a "HOLD" recommendation. The stock value of BBDC has dropped substantially since 2013, which resulted in unimpressive total returns, even though the company maintained steady dividend payments. The company faces two major issues: its debt-to-equity ratio of 1.22x and its stock price discount relative to NAV.
BDC Weekly Review: Q2 Guidance Starts To Trickle In
We take a look at the action in business development companies through the third week of April and highlight some of the key themes we are watching. BDCs rallied with a 4% gain over a holiday-shortened week, though the sector remains down month-to-date, with GAIN outperforming. Q1 guidance is coming in: MAIN expects a record NAV, while CSWC anticipates a 14% drop in NII but a slight NAV increase.
CGBDL: It Is A Good Time For Us To Switch Gears
We constantly monitor BDC-issued Baby Bonds due to the issuers' regulatory leverage limitations and attractive yields, using Moody's BDC credit rating methodology for better evaluation. Carlyle Secured Lending offers a tempting adjusted NII yield of 13.5% and adjusted expected ROE of 11.8%, but with inherent credit and interest rate risks, too. CGBDL, trading at $26.00, offers a 7.50% Yield to Maturity but a less impressive 3.51% Yield to Call, making it less attractive currently.
Horizon Technology: One Of My Highest-Conviction No-Gos In The BDC Space
Since December, 2023, I have been skeptical on Horizon Technology. During this time period, the BDC has registered a negative total return performance of 26%, while the BDC market has delivered a positive figure of 5%. As a result of these declines, HRZN trades at a discount and offers one of the highest dividend yields in the BDC sector.
Kayne Anderson BDC: Solid Income Prospects, Just Needs More Time
The newly listed BDC Kayne Anderson has an effective initial portfolio management, but its brief operational history requires investors to maintain a "HOLD" position. The company has shown stability through early market difficulties while performing better than multiple top-rated BDCs at a slight discount to its net asset value. KBDC has strong financial health through its low debt-to-equity ratio and high institutional ownership, while providing a 10% dividend yield with well-covered dividend payments.
The Dark Side Of BDC Investing
3 hidden risks that could cause your BDC income to get slashed overnight. Why top names may face sharp declines ahead. The only BDCs we are still buying at High Yield Investor are not the ones you may think.
Palmer Square Capital BDC: An Ugly Duckling
Palmer Square Capital BDC's recent dividend cut and high leverage raise concerns, especially given their short track record and economic uncertainty. Despite some positive metrics like high exposure to first-lien loans and larger borrower EBITDAs, caution is warranted due to potential recession risks. The BDC's high leverage ratio of 1.50x, well above peers, limits flexibility and poses risks in a volatile economic environment.
Kayne Anderson BDC: 10% Yield And Low Leverage Make It A Buy
Income stocks like Kayne Anderson BDC are crucial in volatile markets, offering a 10.2% dividend yield and reducing reliance on capital gains. KBDC's portfolio is 98% first-lien senior secured loans and diversified across 110 companies in mostly defensive sectors. Despite lower interest rates, KBDC's solid underwriting, low leverage ratio, and steady NAV performance provide a strong foundation for future growth.
