BDC Weekly Review: Private Lenders Are Flush With Cash
We take a look at the action in business development companies through the third week of July and highlight some of the key themes we are watching. BDCs are down 2% this week, flat month-to-date, with OCSL underperforming and TPVG outperforming. Blue Owl acquires Atalaya Capital, marking its third recent acquisition, pushing into asset-based credit market to diversify its corporate lending business.
Goldman Sachs BDC: Decreasing Non-Accruals And Increased Investment Activity (Upgrade)
Goldman Sachs BDC maintains a high distribution rate of 11.9%. The dividend has never been cut, which makes this a reliable income investment. Portfolio consists of 149 companies, the majority on first lien senior secured basis, with improving credit quality. Non-accruals have decreased quarter over quarter. Current valuation of GSBD is attractive with potential for price recovery due to future interest rate cuts.
Gladstone Investment: Smart Managers, And Very Cheap BDC
Gladstone Investment has successfully selected a portfolio of loans and equity investments for the last 10 years, paying double-digit returns. GAIN focuses on lower middle market private businesses with experienced management teams and sustainable FCF, with a 1, 3, and 5-year average ROE of 18%, 17%, and 12%. The company's book value per share has increased significantly over the years, with a potential target price of $22 per share based on a DCF model.
Capital Southwest: An Expensive But Well Run BDC, 9% Yield
Income investing is popular, but many stocks have low dividend yields. The BDC sector is small but provides opportunities for ample dividends. We analyze Capital Southwest in 6 key areas, and compare its valuation with its peers. CSWC is internally managed, and so it saves on management fees, passing the savings to shareholders.
Crescent Capital: Solid BDC With Strong Dividend Coverage
Crescent Capital BDC offers a high dividend yield of 8.9% with a focus on stability and income for investors. CCAP's portfolio consists of floating rate debt with a majority of investments on a first lien basis, providing protection in case of defaults. Despite potential interest rate cuts, CCAP's strong financial performance and distribution coverage make it a buy for income-focused investors.
Ares Capital: One Of The Best Buys In The BDC Sector
ARCC is the largest BDC out there, which comes with many advantages. One clear advantage is the ability to source sizeable volumes to keep the portfolio growth stable. This is an issue for other BDCs. ARCC has managed to sign these new investments by keeping the underwriting standards strict.
BDC Weekly Review: Early Earnings Guidance Is Bullish For The Sector
We take a look at the action in business development companies through the second week of July and highlight some of the key themes we are watching. BDCs had a solid week with an 0.8% average total return. Early indicators of Q2 earnings results from Saratoga Investment and PennantPark show solid performance, suggesting positive total NAV returns for the sector.
Belden (BDC) is on the Move, Here's Why the Trend Could be Sustainable
Belden (BDC) could be a solid choice for shorter-term investors looking to capitalize on the recent price trend in fundamentally sound stocks. It is one of the many stocks that passed through our shorter-term trading strategy-based screen.
BDC Weekly Review: The Benefits Of Convertible Bonds For BDCs
We take a look at the action in business development companies through the first week of July and highlight some of the key themes we are watching. BDCs had a strong week with a 1.5% total return, outperforming the broader income market. Trinity Capital updated the conversion rate of its 2025 convertible bonds, providing benefits for management and mixed impact for existing shareholders.
Is Belden (BDC) Stock Outpacing Its Industrial Products Peers This Year?
Here is how Belden (BDC) and Flowserve (FLS) have performed compared to their sector so far this year.
Portman Ridge Finance: A Year Later, I Still Rate This 14% Yielding BDC A Hold
BDCs have performed well in recent years due to higher interest rates and strong economy, with 5-year total returns approaching 90%. Portman Ridge Finance Corporation has delivered a total return of about 13% in the past year, below median BDC performance. PTMN shows improvement in YTD total return at 15.9%, but still lags behind larger peer BDCs in terms of performance.
BDC Weekly Review: The Puzzle Of Secured Note Issuance
We take a look at the action in business development companies through the last week of June and highlight some of the key themes we are watching. BDCs were slightly up on the week but flat over the month of June, with TPVG and OBDE underperforming. Horizon Tech Finance Corp closed a $100m senior secured credit facility to allow it to issue secured notes.
