BDC Weekly Review: Foreboding Newsflow Haunts BDCs
We take a look at the action in business development companies through the second week of March and highlight some of the key themes we are watching. The BDC sector underperformed amid market volatility, with CION notably weak due to a -5.1% Q4 total NAV return. Median BDC valuations remain in distressed territory, only historically lower during recessions.
Chicago Atlantic BDC, Inc. (LIEN) Matches Q4 Earnings Estimates
Chicago Atlantic BDC, Inc. (LIEN) came out with quarterly earnings of $0.36 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.35 per share a year ago.
Capital Southwest: A High-Quality BDC With An Income Edge
Capital Southwest is a premium income BDC delivering a forward yield near 12% with a 40-year dividend track record and internally managed structure. CSWC's hybrid model leverages lower middle market lending and equity stakes, supporting both recurring and supplemental dividends through realized gains and undistributed taxable income. Recent double-digit top-line growth and a new senior loan JV reinforce CSWC's active, compounding business model, though future growth is expected to moderate.
1 BDC, 1 CEF, And 1 Covered Call ETF For 10%+ Retirement Income
The current environment does not support high-yield investments, especially if we talk about a 10%+ pick zone. In times like these, it is extremely hard to find 10%+ yield investments without introducing unnecessary stress. In BDC, CEF, and covered call ETF areas, there are some hidden gems available.
BDC Weekly Review: Divergence, Not Weakness
BDC Weekly Review: Divergence, Not Weakness
BDC Tailwinds Are Building, Not Breaking
The sentiment towards BDCs remains depressed. The P/NAV discounts are above 20%, and the redemptions show no signs of reversal. Yet, while this chaos happens, there are some hidden tailwinds forming in the system.
BDC Weekly Review: Earnings Are Fine
We take a look at the action in business development companies through the last week of February and highlight some of the key themes we are watching. BDCs fell sharply on Friday, likely as a result of a bankruptcy of a UK mortgage provider. Q4 earnings are largely fine in aggregate, if not spectacular.
My Largest BDC Pick KBDC Has Again Proven The Skeptics Wrong
Kayne Anderson BDC stands out as a top defensive BDC pick, demonstrating resilience amid sector headwinds and SaaS-related volatility. KBDC delivered quarter-over-quarter NII per share growth to $0.44, outpacing sector peers suffering dividend cuts and negative NII trends. The base dividend coverage is robust at 110%, with management guiding for the $0.40 dividend to be maintained throughout 2026.
Are Computer and Technology Stocks Lagging Belden (BDC) This Year?
Here is how Belden (BDC) and Cognex Corporation (CGNX) have performed compared to their sector so far this year.
Goldman Sachs BDC: Speculative Buy On Exaggerated SaaS Fears
Goldman Sachs BDC (GSBD) likely saw its peak in net investment income, with a 20%+ NII contraction and rising non-accruals in Q4'25. GSBD restored dividend coverage to more than 100%, but maintains only a small safety margin amid portfolio shrinkage and higher non-performing loans. Shares trade at a 26% NAV discount (P/NAV 0.74X), reflecting elevated credit risk and concerns over loan quality, especially in SaaS exposure.
Crescent Capital BDC - Interesting, But No Rush
Crescent Capital BDC (CCAP) offers a 13% yield and trades at a discount to NAV, but portfolio quality has eroded, with rising non-accruals and watchlist investments. CCAP's portfolio is concentrated in healthcare and software, with 99% sponsor-backed, first lien senior secured loans, but sector and credit risk are elevated, versus peers. Dividend coverage remains solid, supported by spillover income, yet management is reassessing the dividend and structure, with an update expected next quarter.
Why 2026 Will Likely Bring More BDC Pain And Which 2 Picks I Like
The BDC sector faces heightened volatility in 2026 due to AI-driven software disruption and anticipated rate cuts. So far, multiple BDCs have reduced their leading dividends, with more likely in 2026. Ares Capital and Blackstone Secured Lending trade below NAV, offering yields of 10.3% and 12.9%, respectively, but near-term caution is warranted due to their 20%+ software exposure. Despite attractive yields, I recommend waiting until the back half of 2026 for better clarity on rates and software exposure before aggressive buying.
