EEI_Tony 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 last week of May. Marke ...

MicroStockHub Introduction As a huge fan and longtime investor in BDCs, the high interest rate environment has boosted my income tremendously. My BDC holdings have been my top performers, with Capital Southwest (CSWC) leading the pack. So, in short, I have no complaints from me when it comes to the remaining higher for longer for the sector. That's why I think it's essential not to solely chase high yields, and invest in those that offer not only higher yields, but ones that are well-covered. One BDC that h ...

Hiroshi WatanabeIn December last year, I wrote an article on Monroe Capital (NASDAQ:MRCC) outlining three specific reasons why investors should, in my opinion, avoid investing in this BDC. These reasons were the following: Low margin of safety in the dividend coverage. One of the highest leverage profiles in the BDC space. Clear signs of deteriorating portfolio quality. Back then, in light of expectations on falling interest rates and an increased distress in the corporate segment, investing in a BDC, ...

malerapaso Introduction I think I can speak for a lot of retirees when I say the most important goal in retirement is a reliable stream of income from strong businesses. Capital appreciation is always great to see, but income reliability is a key metric for those in retirement. That's likely a reason business development companies are considered attractive income vehicles for them. Moreover, BDCs can also be attractive for other investors seeking income, as they generally offer higher-than-normal yields. On ...

Richard Drury I found myself adding to my position in Goldman Sachs BDC (NYSE:GSBD) last week as the company’s share price stabilized after an undeserved sell-off earlier in May. In my opinion, Goldman Sachs BDC’s first lien strategy paired with its ability to consistently deliver high distribution coverage ratios skewed the risk profile further to the upside, especially now that the BDC's shares trade at a lower price-to-NAV ratio. Goldman Sachs BDC also has revaluation potential as the Federal Reserve ...

For investors seeking momentum, Putnam BDC Income ETF (PBDC) is probably on the radar. The fund just hit a 52-week high and is up 21.3% from its 52-week low price of $28.77/share.But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:PBDC In FocusThis ETF is active and does not track a benchmark. The Putnam BDC ETF seeks current income. The fund charges 679 bps in fees and yields 9.07% annually.Why the Mo ...

Hiroshi Watanabe The Nuveen Churchill Direct Lending Corporation (NYSE:NCDL) is one of the BDCs that have capitalized on the prevailing tailwinds and went public this year (late January). While NCDL's net asset base is quite large, compared to Morgan Stanley Direct Lending BDC (MSDL), which is another BDC that has carried out an IPO this year, the total size is roughly 2x smaller. In April, I wrote an article on MSDL, assessing the underlying fundamentals to understand whether they are attractive enough to ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.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, etc. -- ...

JamesBrey Introduction In today's market, it's hard to find high-quality stocks that are trading at great valuations. This is especially true in the BDC sector; it is very hard to find deals, with many of their share prices trading at premiums above their NAVs as a result of the high interest rate environment. One BDC in particular that trades at a small discount to its NAV is PennantPark Floating Rate Capital (NYSE:PFLT), a quality, monthly-paying BDC that has solid fundamentals. In this article, I dis ...

Thapana OnphalaiI am ramping up my exposure to New Mountain Finance (NASDAQ:NMFC) this week, as the business development company has been able to grow its dividend payments and has attractive total return potential. The stock is presently priced below net asset value, and I think that the company has upside in its Equity portfolio as long as the U.S. economy is doing well. With a 10% yield, that is covered by net investment income, and taking into account that the central bank is not eager to lower shor ...