Oaktree Specialty Lending: A Series Of Unfortunate Events For This BDC
Oaktree Specialty Lending had a disappointing quarter with a drop in NAV and investment income, but still eked out a positive total NAV return. The management fee was reduced permanently to 1%, which should drive a 6% rise in net income. The NAV fell by 2.8%, marking the third sizable drop in a row and the eighth drop in the last 10 quarters.
TriplePoint Venture Growth: 25% Dividend Cut, What Now? (Rating Upgrade)
TriplePoint Venture Growth cut its dividend by 25% due to insufficient net investment income and high non-accrual percentages, leading to significant selling pressure on the BDC's shares. The BDC's weak balance sheet quality resulted in a poor distribution coverage profile. The dividend cut, however, should help the BDC improve its distribution coverage going forward. Therefore, my rating upgrade is a hold.
Golub Capital BDC's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 1 (Includes Recommendations As Of 8/23/2024)
Part 1 of this article compares GBDC's recent quarterly change in NAV, quarterly and trailing 12-month economic return, NII, and current valuation to 14 BDC peers. Part 1 also performs a comparative analysis between each company's investment portfolio as of 3/31/2024 and 6/30/2024. This includes an updated percentage of investments on non-accrual status. I also provide a list of the other BDC stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), and appropriately valued (a hold recommendation).
Goldman Sachs BDC: Risks Are Growing (Rating Downgrade)
Goldman Sachs BDC's Q2'24 results showed a sharp increase in non-accrual percentage. Despite solid dividend coverage of 1.31x in Q2, growing non-performing loan risks and potential Federal Reserve rate cuts pose challenges for future net investment income. GSBD's valuation is below its 3-year average price-to-NAV ratio, reflecting negative sentiment from the Q2 earnings report.
BDC Weekly Review: PSEC Gets Bad Press
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 delivered a 2% total return on the week, starting to climb out of the early August drawdown. A recent Bloomberg article on Prospect Capital focused on cash generation and preferred stock issuance.
Why We Are Adding BDCs To Our Income Portfolios Right Now
Over the last couple of weeks we added a number of new BDC positions to our Income Portfolios despite a fairly expensive credit market backdrop. We discuss the reasons behind this and where we see value in the BDC space. Recent market hiccup has opened up attractive opportunities in the BDC sector, particularly in newly IPO'd companies with lower liquidity and awareness.
NCDL: Initiating Coverage And Adding A Position In This 13% Yielding BDC
We initiate coverage of business development company Nuveen Churchill Direct Lending Corp. It trades at a 13% dividend yield. Portfolio quality has remained stable, with low non-accruals and a focus on first-lien loans. We added a position in the stock given its portfolio quality, resilience and above-average valuation-adjusted performance.
Sixth Street Specialty Lending: Good Way To Play Defense In BDC Sector
I have been bullish on TSLX since early January this year, making the case for protected dividend income. While the price performance has been negative, the dividends have continued to come in, balancing the total return profile. Assessing the Q2, 2024 data, we can see that the thesis of TSLX being a defensive dividend pick is still there.
Bain Capital Specialty Finance: Adding This 11.5%-Yielding BDC After Another Solid Quarter
We take a look at the Q2 results of the BDC Bain Capital Specialty Finance. BCSF is part of Bain Capital Credit's private credit umbrella and is overweight Defense, Tech, and Business Service sectors. BCSF trades at an 11.5% dividend yield and a 12% discount to book, with stable NAV and strong income dynamics.
Belden Inc (BDC) Hits Fresh High: Is There Still Room to Run?
Belden (BDC) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
What Makes Belden (BDC) a New Strong Buy Stock
Belden (BDC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Here's Why Momentum in Belden (BDC) Should Keep going
Belden (BDC) made it through our "Recent Price Strength" screen and could be a great choice for investors looking to make a profit from stocks that are currently on the move.
