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 ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

We Are Trinity Capital (NASDAQ:TRIN) is a well-managed BDC with an attractive dividend yield of more than 13%. However, in recent quarters, I have increasingly been concerned about the risk of deteriorating portfolio quality at TRIN and other BDCs. As of my last analysis during the run-up to the fourth quarter of 2023 earnings report, there was a marked increase in the portion of the portfolio placed on the watch list at TRIN—a sign that these investments might be inching closer to default. Specifically ...

Market Performance - Preferred stocks had a positive performance for the week and the month of May, with most sectors finishing in the green, marking the sixth up month in the last seven for the asset class [2] - Yields for preferred stocks have mostly range-traded this year at a bit under 7% [3] - Spreads continue to trade at very tight levels, a common theme across the broader income space [4] BDC Bond Issuance and Features - BDC Main Street (MAIN) issued $300 million of 6.5% bonds due 2027, with a shorter maturity of 3 years, which is at the shorter end of the typical 3-5 year BDC bond range [5] - The shorter maturity profile of the relatively high-quality BDC bonds provides investors with higher yields in the current environment, as shorter-dated bonds tend to have higher yields due to the inverted yield curve [5] - The bond includes a make-whole provision, which is favorable to bondholders in case of redemption, as the company would have to pay back the future coupons, appropriately discounted, if the bond is called early [6] - The yield on the bond is less than it would be in a more traditional call structure, but there is a small chance of an unexpected windfall for holders if the company decides to redeem the bond [6] BDC Sector Analysis - The BDC baby bond sector is favored due to the strong performance of book values in the sector, particularly relative to other investment company sectors such as mortgage REITs or many CEFs [7] - BDCs are subject to the asset coverage requirements of the Investment Company Act, unlike mortgage REITs, and most BDCs have on average half of their liability profile in secured financing, which sits ahead of unsecured bonds [7] - Bonds like HTFC, OXSQZ, and TRINZ are trading at yields around 8% or higher, making them attractive in the sector [7]

JamesBrey Introduction Gladstone Capital (NASDAQ:GLAD) is a quality, monthly-paying BDC that is a great investment inside an income-oriented portfolio to compound dividends. The stock has performed well, and the last four articles published on them have all been buy ratings. And while I consider them to be of higher-quality, I think the share price has gotten ahead of itself, warranting a hold rating. In this article, I discuss the BDC's latest quarter highlights and reasons why I think Gladstone Capita ...

Klaus Vedfelt/DigitalVision via Getty ImagesIntroduction For those that may be familiar with Blue Owl Capital Corporation (OBDC), a popular BDC here on Seeking Alpha, they have a newly-listed sister, Blue Owl Capital III (NYSE:OBDE). They went public at the beginning of this year. For those who own OBDC already, their sister is another BDC you may want to consider. The two share a lot of similarities, but their differences may suite investors looking for additional income in a dividend-focused portfolio ...