Image Source Income investing is an attractive investing strategy, but the majority of stocks have relatively low dividend yields. Or, a desired income would require more capital than we own to achieve using ordinary stocks. The BDC sector comes to mind as a way to spike our portfolio dividend yield and still keep equity-like returns. The subject of this article is the BDC called Capital Southwest (NASDAQ:CSWC). A BDC is a managed portfolio of loans, with returns amplified with leverage. This simple sta ...

Khosrork/iStock via Getty Images Overview Business Development Companies continue to be a great place to earn a higher yield and benefit from the higher interest rate environment. Crescent Capital BDC (NASDAQ:CCAP) has continued to rake in higher levels of net investment income, but the environment may be changing with interest rate cuts on the horizon. When I previously covered CCAP back in April, interest rate cuts seemed unlikely. However, recent economic data may be signaling a change in the market, ...

Ibrahim Akcengiz Earlier this year I wrote an article on Ares Capital (NASDAQ:ARCC) arguing why this BDC offers one of the best opportunities to enjoy solid returns from this specific sector. The bottom line was that ARCC has a truly diversified portfolio (on security, sector and asset class level) coupled with a strict underwriting policy that helps keep the underlying risk level low relative to the almost double-digit yield that is provided by this BDC. In other words, ARCC offers close to double-digi ...

Adam Gault 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 second week of July. ...

LOS ANGELES, July 18, 2024 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC”) (NASDAQ: CCAP) today announced it will release its financial results for the second quarter ended June 30, 2024 on Monday, August 12, 2024 after market close. Crescent BDC invites all interested persons to attend its webcast/conference call on Tuesday, August 13, 2024 at 12:00 p.m. Eastern Time to discuss its second quarter ended June 30, 2024 financial results. Conference Call Information: The conference call will be ...

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, ...

Core Viewpoint - The Business Development Company (BDC) sector experienced a strong performance, with a total return of 1.5%, outperforming the broader income market, and sector valuations are near a 5-year peak [5][7]. Market Action - BDCs had a total return of 1.5% during the week, led by high-valuation companies such as MAIN, CSWC, and HTGC, indicating a divergence in sector valuation during market rallies [5]. - The sector valuation has mostly reversed recent declines and is trading close to its 5-year peak [5]. Market Themes - Trinity Capital (TRIN) updated its 2025 convertible bonds' conversion rate, with the conversion price now set at $12.62, allowing bondholders to convert $1,000 principal into 79.2226 shares [6]. - The net income for TRIN has been around $0.55-0.6, suggesting potential for further dividend increases [6]. - Convertible bonds offer management lower coupon payments compared to standard unsecured bonds, and the current market value of $1,000 in bonds is worth $1,113 in common shares due to stock trading premiums [6]. - The issuance of additional common shares may lead to temporary EPS dilution for existing shareholders, but net income remains unchanged, with potential for future EPS growth as new equity is leveraged [6]. Stance and Takeaways - The average BDC is trading at a 9% premium, close to the peak over the last 5 years, indicating expensive valuations [7]. - Underlying loan spreads are tight, with 60% of loans in the public market trading above par [7]. - Despite the overall high valuations in the BDC sector, there are individual BDCs trading at attractive levels, such as Blue Owl Capital Corp III (OBDE), Golub Capital BDC (GBDC), and Barings BDC (BBDC) [8].

peshkov I hold several BDCs (business development companies) in my Income Compounder portfolio. Over the past several years, BDCs have performed extremely well due to higher interest rates and a generally strong economy, especially in the US. In fact, according to Raymond James in their BDC weekly insight that tracks the performance of most of the publicly traded BDCs, 5-year total returns have approached 90% for the equal weight RJ BDC Index, exceeding even that of the S&P 500, which has a total return ...

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 ...