Zerbor Ares Capital: Market-Leading BDC With Scale Ares Capital (NASDAQ:ARCC) investors are likely riding on the higher-for-longer Fed posture with much satisfaction. With a 1Y total return of more than 23%, it has underperformed Main Street Capital's (MAIN) more than 40% total return. Despite that, ARCC's consistency in lifting its NAV per share and well-diversified portfolio should continue to help it perform relatively well. In my previous bullish ARCC article in late March 2024, I highlighted why AR ...

tadamichi Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving the market or that investors ought to be mindful of. This update covers the period through the third week of June. Ma ...

Peach_iStock Introduction As income investors, we all have stocks that we favor as a result of their strong income generation. Altria (MO) and Capital Southwest (CSWC) are a couple that come to mind when I think of companies that generate great income for their shareholders. But I also enjoy searching for those with huge potential to do the same in the foreseeable future. Whether they are going through changes in their business model, or are a small-cap company that fly under investor's radar. One BDC t ...

loveguli In this article, we take a look at the BDC Bain Capital Specialty Finance, Inc. (NYSE:BCSF). We recently added the stock to our coverage and the service BDC Tool. BCSF is overweight Aerospace / Defense and High Tech sectors. This is a bit different from the usual Tech / Healthcare sector overweights. BCSF The company is focused on the core middle-market segment with a median EBITDA of $44m. Unlike the upper middle-market segment, occupied by the largest BDCs, borrowers in this segment are, ar ...

Torsten AsmusDecember last year, I wrote an article on Runway Growth Finance (NASDAQ:RWAY), which is a VC-focused BDC. As many of my readers have probably noticed it, I tend to avoid investing in BDCs that carry an elevated exposure towards VC markets. The reason for this is simple - I see no major reason why investors should take additional risk on top of what conventional BDCs offer. It really boils down to capturing roughly 200 - 400 basis points in extra yield, which comes with a huge risk that is a ...

da-kuk This year in April, I issued a relatively bullish article on Main Street Capital (NYSE:MAIN) - Main Street Capital: One Of The Best Ways To Play Defense In BDC Space. As the title implies, the justification behind my optimistic stance on MAIN was its defensive characteristics that makes the dividend stable and predictable. While more details are embedded in my previous article, these were the key fundamental characteristics that, in my opinion, render the investment case very safe: Senior levera ...

PgiamWelcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving the market or that investors ought to be mindful of. This update covers the period through the second week of June. Market ...

IvelinRadkov Introduction There are many high-yielding BDCs that are considered attractive investments because of their lower prices, and higher dividend yields in general. But all that glitters isn't gold. We've all heard that phrase right? Throughout my time here on Seeking Alpha, I've preached the Quality Over Quantity theme and it's something I stand by when in search of new investments. Of course, what I consider to be higher or lower quality may be different to other investors. But hopefully my ar ...

phototechno Capital Southwest (NASDAQ:CSWC) offers passive income investors a growing investment portfolio, a First Lien-focus, a well-covered 10% dividend yield and dividend upside. The business development company easily covered its dividend with net investment income in the first quarter, and I think that investors are going to see hikes in the regular dividend in 2024. Though Capital Southwest is selling for a rather high premium to net asset value, the First Lien-focus, the company’s strong history ...

J StudiosIntroduction Business Development Companies have performed well since the start of interest rate hikes in 2022. As a result, many of them trade at significant premiums above their NAV prices. One BDC that I think still trades at an attractive valuation is Golub Capital BDC (NASDAQ:GBDC), a higher-quality BDC that is down more than 3% in the past month. In this article, I discuss the company's recent earnings, fundamentals, and why I think they are still an attractive income play despite their s ...