Gladstone Capital: Monthly 8.7% Yielding BDC I Would Buy On A Pullback
Gladstone Capital is a quality monthly-paying BDC with a respectable track record and performed strongly with its share price up roughly 20% in the past year. The BDC reported a slight decline in net investment income but saw growth in total investment income and overall portfolio fair value. The company's dividend coverage is tight, and its share price may be overvalued, warranting a hold rating for now.
Blue Owl Capital Corporation III: A Suitable Alternative To Their Sister BDC
Blue Owl Capital lll is a newly-listed sister BDC to Blue Owl Capital with similarities and some differences that I highlight within this article. OBDE reported a decline in net investment income but saw significant growth in total investment income and new investment commitments. OBDE has a higher exposure to first-lien loans and a larger weighted-average EBITDA for their portfolio companies compared to OBDC.
BDC Weekly Review: BDCs And Insurance Companies Are An Odd Pairing
We take a look at the action in business development companies through the last week of May and highlight some of the key themes we are watching. BDCs had a good week, outperforming the broader income space. The sector gained 3% in May. Barings BDC experienced resignations due to friction between MassMutual and the private credit lending team.
Goldman Sachs BDC: This 12% Yield Is Still A Buy For Income Seekers
Goldman Sachs BDC has reported strong earnings, with double-digit growth in net investment income and increased originations year-over-year. The company's first-lien exposure is higher than its peers like Capital Southwest, positioning them well for future economic downturns should they arise. Their balance sheet is also solid with ample liquidity, and a well-covered dividend, making it an attractive investment option.
Monroe Capital: The Risks Are Still Too Excessive To Go Long
Monroe Capital (MRCC) has outperformed the BDC market despite my previous concerns about its risk profile. Yet, Q1 2024 earnings show a decrease in underlying NAV and a decline in adjusted net investment income, raising questions about dividend sustainability. The leverage has increased, making it the fourth most leveraged BDC, and a significant portion of the borrowings are based on cheap fixed rate financing which will inevitably increase the borrowing costs.
Gladstone Investment: Solid 6.8% Yielding BDC For Retirees Seeking Income
Gladstone Investment is a reliable monthly paying BDC that offers a steady stream of income for retirees. The company has shown strong performance over the past year, outperforming peers and increasing its total portfolio value. GAIN is positioned for growth, with a growing NAV and the ability to capitalize on future investment opportunities with increased liquidity.
Goldman Sachs BDC: Lock In A High-Quality 12% Yield On The Drop
Goldman Sachs BDC's share price appears to have stabilized after a sell-off in May, making it an attractive investment for dividend investors. The company's first lien strategy, variable rate exposure and high distribution coverage ratios make it a solid choice in the BDC sector. The lower price-to-NAV ratio and potential revaluation add to the attractiveness of an investment in Goldman Sachs BDC.
BDC Income ETF Hit a 52-Week High
For investors seeking momentum, Putnam BDC Income ETF PBDC is probably on the radar. The fund just hit a 52-week high and is up 21.3% from its 52-week low price of $28.77/share.
BDC Weekly Review: Rule-Of-Thumb Analysis Isn't Working
We take a look at the action in business development companies through the fourth week of May and highlight some of the key themes we are watching. Rules of thumb about rising rates driving poor BDC performance has not panned out. We highlight the SAR dividend raise and GAIN valuation.
Barings BDC: Credit Quality Improvement Fully Priced In (Rating Downgrade)
Barings BDC has improved its credit quality and has a sustainable dividend payout ratio. The BDC's non-accrual ratio dropped significantly, leading to a higher stock price and lower discount to net asset value. The BDC's dividend is still covered by net investment income, but the payout ratio has increased and the trend is slightly negative.
Blue Owl Capital Corporation III: Adding A Starter Position In This 10.25%-Yielding BDC
We provide a Q1 update of Blue Owl Capital Corporation III and discuss our starter position in the stock. OBDE has a portfolio allocation typical of the sector, with a focus on Tech, Insurance, and Healthcare industries. Net investment income fell to $0.39, in part due to one-off expenses.
NCDL: Too Many Uncertainties To Go Long
Nuveen Churchill Direct Lending Corporation is a BDC that went public this year, but so far, has underperformed the BDC index. By looking at the underlying financials, we will recognize a sufficient basis of data points that explain the market's reaction. In this article, I assess NCDL's fundamentals and elaborate on the key risks that, in my opinion, are sufficient for assuming a conservative view against NCDL.
