Chicago Atlantic BDC: Deep NAV Discount In A Diversifying Loan Portfolio
Chicago Atlantic BDC (LIEN) trades at a 20-25% discount to its $13.27 NAV, offering a rare value anomaly in the BDC space. LIEN's portfolio is now 76% non-cannabis loans, reflecting a strategic shift toward diversification and away from cannabis sector concentration. With a 13.3% dividend yield, $0.42 NII per share, and conservative leverage, LIEN delivers covered, high-yield income, with a significant margin of safety.
The Most Dangerous Mistakes BDC Investors Keep Making
Double-digit yields look irresistible… but there are hidden risks few income investors truly understand. Business Development Company dividends are about to change – here's what everyone is missing.
Crescent Capital BDC: This 13%+ Yielding Bargain Remains A Buy
Crescent Capital BDC, Inc. trades at a 0.66x P/NAV, reflecting a ~34% discount and a 13.4% dividend yield. CCAP's fundamentals remain robust: 107% dividend coverage, conservative 40% portfolio LTV, and 2.2x interest coverage, despite a slight non-accrual uptick. A potential base dividend cut looms due to lower SOFR, but even a 20% reduction would leave a ~10.7% yield and stable NAV outlook.
Fickle Sentiment, High Yields: Why We Are Buying The BDC Panic
First, it was "First Brands" risk; now it's "AI software" risk. Market narratives shift monthly, but the cash keeps flowing. Ares Capital quality: Non-accruals remain low at 1.2% of fair value, and the stock is trading below its $19.94 NAV – a level where we are enthusiastic buyers. Blue Owl sold a loan slice to private institutions at 99.7% of par, proving the public market's discount is completely unjustified.
Trinity Capital: Not Your Typical 13%+ Yielding BDC
Just like almost all BDCs, Trinity Capital has suffered from the SaaS-driven selloff. However, TRIN is not your typical BDC and the Q4 report proves that. In the article, I explain in detail the unique value proposition that TRIN brings to the table and why this BDC remains within my Top 3 BDC pick list.
Time To Derisk BDC Holding And Avoid Carlyle Secured Lending
Carlyle Secured Lending Inc. trades at a steep 30% P/NAV discount, which is even below the heavily discounted sector average. In Q4, we could observe stable (low) non-accruals at 1.2% FV, and how balanced the exposure to SaaS is. Another positive element was that the base dividend remained unchanged, which now translates to almost 15% yield.
Barings BDC: Dividend Risk Fully Priced In
Barings BDC posted Q4'25 EPS of $0.27, beating consensus by $0.01, but faces headwinds from expected lower base rates in 2026. BBDC's portfolio quality remains strong with a 0.7% non-accrual rate and 75% exposure to senior secured loans, though net investment income and coverage have declined 4% year-over-year. Shares trade at a significant 17% discount to NAV, reflecting market anticipation of a potential 10-15% dividend cut amid shrinking excess NII margin.
Why BDC Dividend Cuts Matter Less Than You Think
System-wide BDC dividend cuts are highly likely as base dividend coverage averages 99% and growth is constrained. As a result, many BDC investors have decided to sit on the sidelines until the expected dividend cuts materialize. The idea is that a cut will lead to a negative share price reaction and thus provide a better opportunity to buy at a bargain price.
Is Belden (BDC) Stock Outpacing Its Computer and Technology Peers This Year?
Here is how Belden (BDC) and ATN International (ATNI) have performed compared to their sector so far this year.
Palmer Square Capital BDC: Trading At A Massive Discount For A Reason
Palmer Square Capital BDC remains a sell due to persistent NAV declines, weak earnings, and lack of near-term catalysts. PSBD trades at a record 23.47% discount to NAV, but I see further downside risk outweighing the appeal of its 14.6% dividend yield. Management's capital allocation favors supplemental distributions over reinvestment, limiting earnings growth and NAV recovery potential.
Runway Growth Finance's BDC Bond, 7.1% Yield
Runway Growth Finance's acquisition of SWK Holdings is on track to close in late March 2026. This merger is expected to scale RWAY's portfolio and increase its healthcare exposure. RWAY is aggressively lowering its cost of capital by issuing $100 million in new 7.25% notes, RWAYI, due 2031. The proceeds are being used to retire more expensive debt, including the full redemption of the 8.00% RWAYZ notes and a partial redemption of the 7.50% RWAYL notes.
Belden Q4: The Supercycle Is Going To Lift Everyone, But Be Cautious
Belden Inc. delivered strong Q4 results, with sales up 8% y/y and EPS beating estimates by 13 cents. Automation Solutions drove growth, while Smart Infrastructure lagged; profitability improved via higher-margin integrated solutions. BDC management is pivoting toward AI data centers and broadband expansion, restructuring segments to highlight high-growth opportunities.
