I’m a retail investor based in Sydney with three years of experience focusing on achieving financial independence through strategic investments in AI-driven companies. Although I don’t come from a traditional finance background, I’ve developed a strong passion for understanding how artificial intelligence is transforming the global economy. Over the past few years, I’ve become increasingly fascinated by the possibilities of AI—how it’s reshaping industries, driving innovation, and creating new investment fr ...

I’m a retail investor based in Sydney with three years of experience focusing on achieving financial independence through strategic investments in AI-driven companies. Although I don’t come from a traditional finance background, I’ve developed a strong passion for understanding how artificial intelligence is transforming the global economy. Over the past few years, I’ve become increasingly fascinated by the possibilities of AI—how it’s reshaping industries, driving innovation, and creating new investment fr ...

Core Insights - The article analyzes Blackstone Secured Lending's (BXSL) recent performance and compares it with 11 business development company (BDC) peers, focusing on key financial metrics and investment portfolio characteristics [1][2][3]. Group 1: Financial Metrics Analysis - BXSL's net asset value (NAV) per share decreased from $27.33 at the end of Q2 2025 to $27.15 at the end of Q3 2025, reflecting a quarterly decrease of 0.66% [10]. - The economic return for BXSL in Q3 2025 was $0.59 per share or 2.16%, with trailing 12-month and 24-month economic returns of 10.85% and 25.51%, respectively [10][11]. - BXSL's adjusted net investment income (NII) was reported at $0.882 per share for Q3 2025, with a stock price to annualized NII ratio of 8.39x, slightly below the peer average of 9.87x [21][22]. Group 2: Investment Portfolio Composition - As of September 30, 2025, BXSL's investment portfolio consisted of 97% in senior secured first-lien loans and 2% in senior secured second-lien loans, indicating a conservative investment strategy [15][16]. - The fair market value (FMV) versus cost ratio for BXSL was 0.9912x, slightly below the mean of 1.0164x among peers, indicating a minor negative trend [17]. - BXSL had only 0.1% of its portfolio on non-accrual status, which is below the peer average of 2.9%, suggesting a healthier credit profile [18]. Group 3: Comparative Performance - BXSL's cumulative realized loss per share since its IPO was ($0.13), which is more favorable compared to the peer average loss of ($0.89) per share, indicating better long-term performance [19]. - The company had a low exposure of 0.75% to the oil and gas sector, which is below the peer average of 1.45%, reflecting a cautious approach to potential credit risks [20]. - BXSL's stock price as of November 28, 2025, was $27.59, trading at a premium of 1.81% to its estimated current NAV of $27.10, which is more attractive than the peer average premium of 3.65% [25].

Core Insights - The article discusses investment strategies focusing on Long/Short ideas in North America, highlighting the author's background in finance and investment [1]. Group 1 - The author has a Master's degree in Finance and a Bachelor's degree in Economics, indicating a strong academic foundation for investment analysis [1]. - Prior experience includes working at an Investment Fund in the United Kingdom, suggesting a diverse geographical investment perspective [1].

Core Insights - Oaktree Specialty Lending Corporation (OCSL) has frequently entered a discount territory that appears attractive, yet it has consistently disappointed investors who adopt a "buy the dip" strategy [1] Company Overview - Oaktree Specialty Lending Corporation is categorized as a Business Development Company (BDC) [1] Investment Sentiment - The stock has been perceived as a potential opportunity due to its discount pricing, but historical performance has led to investor disappointment [1]

Core Insights - Oaktree Specialty Lending Corporation (OCSL) has frequently entered a discount territory that appears attractive, yet it has consistently disappointed investors who adopt a "buy the dip" strategy [1] Company Analysis - Oaktree Specialty Lending Corporation is categorized as a Business Development Company (BDC) [1] Market Context - The company has a history of falling into discount territory, indicating potential undervaluation, but this has not translated into positive returns for investors [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $35.4 million or $0.40 per share, up from $32.5 million or $0.37 per share in the prior quarter, reflecting a return to normalized prepayment fees and lower interest expenses [4][16] - NAV per share decreased to $16.64 from $16.76 in the previous quarter due to unrealized depreciation on certain investments [16] - Adjusted total investment income increased to $76.9 million compared to $74.3 million in Q3, driven by higher prepayment fees and dividend income [16] Business Line Data and Key Metrics Changes - New-funded investment commitments amounted to $220 million, up 54% from the prior quarter, with prepayments totaling $177 million [10] - First-lien loans represented 88% of new originations, indicating a focus on senior-secured loans [10] - Over 40% of portfolio companies were marked up by about 70 basis points, reflecting improving fundamentals [12] Market Data and Key Metrics Changes - Private credit deal flows showed modest improvement, but the quality of deals was mixed, with a steady supply of high-quality opportunities alongside lower-quality deals [7] - The weighted average spread on deployments during the quarter was approximately SOFR plus 570, indicating competitive pricing in the market [10] - The company noted a cautious optimism regarding private credit spreads, suggesting they may have bottomed out at SOFR plus 450 [8] Company Strategy and Development Direction - The company aims to prudently increase balance sheet leverage to enhance earnings power and deploy capital into interesting investment opportunities [6] - Focus on optimizing joint ventures and reducing non-accruals in equity positions to improve earnings power [6] - The long-term outlook on private credit remains bullish, with expectations for continued premium spreads relative to other floating-rate asset classes [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current market environment, noting mixed themes and ongoing political and economic uncertainty in Europe [7] - The company does not expect outsized repayments for the December quarter and anticipates deployment levels to remain consistent with past quarters [22] - Management highlighted ongoing operational workouts for long-standing non-accruals, focusing on driving performance and maximizing value [31] Other Important Information - The company has ample liquidity of approximately $695 million, including $80 million in cash and $615 million in undrawn capacity on its credit facility [18] - The leverage ratio at quarter end was 0.97 times, slightly up from 0.93 times in the previous quarter, indicating a conservative leverage approach [17] Q&A Session Summary Question: Expectations around investment activity in the December quarter - Management does not expect any outsized repayments and anticipates deployment levels to remain consistent with past quarters [22] Question: Insights on the yield increase related to the Walgreens deal - The yield on new investments was higher due to the complexity of the Walgreens deal, but management does not foresee similar high-spread opportunities in the near term [23][25] Question: Status of non-accruals in healthcare and pharma - Management acknowledged a few larger positions in life sciences that are undergoing workouts, with stable to slightly improving conditions [29][30] Question: Workout strategies for long-standing non-accruals - Operational improvements are being made, with management working closely with teams to drive performance and maximize value [31]

Financial Data and Key Metrics Changes - Adjusted net investment income for the fourth quarter was $35.4 million or $0.40 per share, up from $32.5 million or $0.37 per share in the prior quarter, reflecting a return to normalized prepayment fees and lower interest expenses [4][16] - NAV per share decreased to $16.64 from $16.76 in the third quarter due to unrealized depreciation on certain investments [16] - Adjusted total investment income increased to $76.9 million compared to $74.3 million in the third quarter, driven by higher prepayment fees and dividend income [16] Business Line Data and Key Metrics Changes - New-funded investment commitments amounted to $220 million, up 54% from the prior quarter, with first-lien loans representing 88% of new originations [10][12] - Weighted average yield on debt investments was 9.8%, with the median EBITDA of portfolio companies at approximately $150 million, a decrease of $11 million from the prior quarter [12] Market Data and Key Metrics Changes - Private credit deal flows showed modest improvement, although the quality of deals was mixed, with a steady supply of high-quality opportunities alongside lower-quality deals [7][8] - The weighted average spread on deployments during the quarter was approximately SOFR plus 570, with a tightening of the illiquidity premium observed [10][8] Company Strategy and Development Direction - The company aims to prudently increase balance sheet leverage to enhance earnings power and deploy capital into interesting investment opportunities, maintaining a conservative leverage ratio of 0.97 times [6][16] - Focus on optimizing joint ventures and reducing non-accruals in equity positions to improve earnings power [6] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding private credit spreads, indicating that they may have bottomed out at SOFR plus 450 [8] - The long-term outlook on private credit remains bullish, with expectations that private debt will continue to deliver a premium spread relative to other floating-rate asset classes [8][9] Other Important Information - The company has ample liquidity of approximately $695 million, including $80 million in cash and $615 million in undrawn capacity on its credit facility [18] - The company received a $525,000 dividend from its joint venture during the quarter [18] Q&A Session Summary Question: Expectations around investment activity in the December quarter - Management does not expect any outsized repayments for the December quarter and does not foresee significant deviations in deployment or leverage levels compared to past quarters [21][22] Question: Insights on the yield increase related to the Walgreens deal - The yield on new investments was higher due to the complexity of the Walgreens deal, but management does not anticipate similar high-spread opportunities in the upcoming quarter [23][24][25] Question: Status of non-accruals in healthcare and pharma segments - Management noted that there are a few larger positions in life sciences that continue to be subject to workouts, with operational improvements being made [29][31] Question: Workout strategies for long-standing non-accruals - The company is focusing on operational workouts and working closely with management teams to drive performance, with no significant changes expected in the near term [31][32]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $35.4 million or $0.40 per share, up from $32.5 million or $0.37 per share in the prior quarter, reflecting a return to normalized prepayment fees and lower interest expenses [4][18] - NAV per share decreased to $16.64 from $16.76 in the previous quarter due to unrealized depreciation on certain investments [18] - Adjusted total investment income increased to $76.9 million compared to $74.3 million in the third quarter, driven by higher prepayment fees and dividend income [18] Business Line Data and Key Metrics Changes - New-funded investment commitments amounted to $220 million, up 54% from the prior quarter, with first-lien loans representing 88% of new originations [11] - The weighted average yield on debt investments was 9.8%, with a median EBITDA of portfolio companies at approximately $150 million, reflecting a slight decrease from the prior quarter [13] Market Data and Key Metrics Changes - Private credit deal flows showed modest improvement, although the quality of deals was mixed, with a steady supply of high-quality opportunities alongside lower-quality deals [8] - The tightening of private credit spreads was noted, with spreads bottoming out at SOFR plus 450, indicating a cautious optimism in the market [9] Company Strategy and Development Direction - The company aims to prudently increase balance sheet leverage to enhance earnings power and deploy capital into interesting investment opportunities, maintaining a conservative leverage ratio of 0.97 times [6] - Focus on reducing non-accruals and optimizing joint ventures to improve earnings power and support net investment income [6] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious optimism regarding the long-term outlook on private credit, emphasizing the value of speed and assurance in deal execution for issuers [9] - The company does not expect outsized repayments for the December quarter and anticipates a deployment level consistent with past quarters [24] Other Important Information - The company has ample liquidity of approximately $695 million, including $80 million in cash and $615 million in undrawn capacity on its credit facility [20] - The joint ventures currently hold $513 million of investments, generating ROEs of 12.4% in aggregate during the fourth quarter [20] Q&A Session Summary Question: Expectations around investment activity in the December quarter - Management does not expect any outsized repayments and anticipates deployment levels to be consistent with past December quarters [24] Question: Yield on new investments and pipeline for complex transactions - The yield on new investments was higher due to the complexity of the Walgreens deal, but management does not foresee similar high-spread loans in the upcoming quarter [25][27] Question: Non-accruals in healthcare and pharma segments - Management noted that there are a few larger positions in life sciences that continue to be subject to workouts, with stable to slightly improving conditions [30][32]