Despite interest rates trending lower over the last year, business development companies continue to experience lackluster performance due to concerns around the health of the debt markets. However, SLR Investment ( SLRC ) continues toFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that ...

Core Viewpoint - Business development companies are facing lackluster performance despite lower interest rates due to concerns about the health of debt markets [1] Group 1: Business Development Companies - SLR Investment (SLRC) continues to perform despite the overall challenges faced by the sector [1] - The hybrid investment strategy combining dividend growth stocks, business development companies, REITs, and closed-end funds can enhance investment income while achieving total returns comparable to traditional index funds [1]

NEW YORK, Jan. 06, 2026 (GLOBE NEWSWIRE) -- SLR Investment Corp. (the “Company”) (NASDAQ: SLRC) today announced that it will release its financial results for the quarter and fiscal year ended December 31, 2025 on Tuesday, February 24, 2026 after the close of the financial markets. The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Wednesday, February 25, 2026. All interested parties may participate in the conference call by dialing (800) 245-3047 approximate ...

Core Viewpoint - The article highlights the expertise of Rida Morwa in high-yield investment strategies, emphasizing a focus on sustainable income with a targeted yield of +9% through various investment vehicles [1]. Group 1: Investment Strategy - The Investing Group High Dividend Opportunities aims to provide sustainable income through high-yield investments [1]. - The service includes a model portfolio with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates [1]. Group 2: Community and Education - The service philosophy emphasizes community and education, advocating that investors should not invest alone [1]. - Active engagement is encouraged through vibrant chat access to service leaders and dividend and portfolio trackers [1].

We discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.We continue to be interested in comparing CEFs and BDC companies. Today, we are focusing on Eagle Point Credit Co LLC ( ECC ) and SLR Investment Corp. ( SLRC ). Currently, these 2 companies are trading at similar discountsArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 4 ...

Core Insights - The article discusses the comparison between closed-end funds (CEFs) and business development companies (BDCs), specifically focusing on Eagle Point Credit Co LLC (ECC) and SLR Investment Corp. (SLRC), which are currently trading at similar discounts [1] Group 1: Company Analysis - Eagle Point Credit Co LLC (ECC) and SLR Investment Corp. (SLRC) are highlighted as two companies of interest due to their comparable trading discounts [1] - The analysis is led by Denislav Iliev, an experienced day trader with over 15 years in the field, who manages a team of 40 analysts [1] Group 2: Investment Strategy - The investment group Trade With Beta, led by Denislav Iliev, focuses on identifying mispriced investments in fixed-income and closed-end funds using straightforward financial logic [1] - The service includes frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1]

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 stock market experienced a sell-off of business development companies (BDCs) in response to the First Brands bankruptcy, providing an opportunity for income investors [1] Group 1: Market Reaction - The sell-off of BDCs was largely unrelated to their individual performance, indicating a broader market reaction rather than company-specific issues [1] Group 2: Investment Strategy - The focus is on high-yield investment strategies, with a targeted safe yield of over 9%, emphasizing sustainable income through various high-yield investments [1]

Core Insights - SLR Investment Corp reported stable third-quarter results, with net investment income of $0.40 per share and net income of $0.43 per share, reflecting a 9.4% annualized return on equity [1][17] - The company's net asset value per share increased slightly to $18.21 as of September 30, 2025, remaining approximately flat year over year [1][14] - SLR's multi-strategy approach to private credit investing has allowed it to maintain stability in its portfolio amid rising credit risks and competitive market conditions [5][38] Financial Performance - The company originated $447 million in new investments during the third quarter, a 12.7% increase year over year, while repayments totaled $419 million [4][5] - Gross investment income for the quarter was $57 million, up from $53.9 million in the previous quarter, with net expenses rising to $35.4 million [16][17] - The net increase in net assets resulting from operations was $23.3 million for the quarter, compared to $24.2 million in the prior quarter [17] Portfolio Composition - Approximately 93% of third-quarter originations were in specialty finance, reflecting a shift towards strategies that offer better risk-adjusted returns [10][19] - As of September 30, 2025, 83% of the loan portfolio consisted of specialty finance investments, with cash flow loans representing only 15.3% [11][12] - The comprehensive portfolio totaled approximately $3.3 billion, with 98.2% consisting of senior secured loans [22] Market Conditions and Strategy - The company is focusing on asset-based lending (ABL) due to strong demand from borrowers seeking liquidity solutions amid uncertain economic conditions [8][24] - SLR's ABL portfolio totaled over $1.4 billion, representing 44% of the total portfolio, with a weighted average yield of 13.4% [25][26] - The company has made significant investments in personnel and infrastructure to enhance its ABL capabilities, hiring over 100 new employees in the past two years [9][46] Risk Management - SLR has adopted a more discerning approach to cash flow lending to safeguard performance in a high-interest rate environment [6][39] - The weighted average investment risk rating of the portfolio was under two, indicating a low-risk profile, with 99.5% of the portfolio performing on a cost basis [23] - The company emphasizes rigorous underwriting and active monitoring to mitigate risks associated with asset-backed lending [20][21]

Financial Data and Key Metrics Changes - SLR Investment Corp reported net investment income of $0.40 per share and net income of $0.43 per share for Q3 2025, with net asset value per share increasing slightly to $18.21 [4][14] - The company's net income for the quarter equates to a 9.4% annualized return on equity, with net investment per share being a penny below the base dividend of $0.41 [4][16] - Gross investment income totaled $57 million, up from $53.9 million in the previous quarter, while net expenses increased to $35.4 million from $32.3 million [16] Business Line Data and Key Metrics Changes - During Q3, SLR originated $447 million in new investments, a 12.7% increase year-over-year, and received repayments of $419 million [5][10] - Approximately 93% of Q3 originations were in specialty finance, reflecting a strategic shift towards this area due to more attractive risk-adjusted returns [10][11] - The asset-based lending (ABL) portfolio totaled over $1.4 billion, representing 44% of the total portfolio, with a weighted average asset-level yield of 13.4% [24] Market Data and Key Metrics Changes - The company noted strong demand for corporate asset-based lending solutions as companies seek liquidity amid uncertain economic conditions [9] - The weighted average yield on the comprehensive portfolio was 12.2%, consistent with the prior quarter, indicating stability in the portfolio's performance [21] - The portfolio's risk profile remains strong, with 99.5% of investments performing and only one investment on non-accrual [22] Company Strategy and Development Direction - SLR continues to focus on specialty finance strategies due to their higher pricing and greater downside protection [18] - The company is strategically hiring to expand its asset-based lending capabilities, with over 100 new hires in the past two years [9][40] - SLR's multi-strategy approach to private credit investing is designed to preserve capital and provide a diversified investment portfolio [34] Management's Comments on Operating Environment and Future Outlook - Management expressed awareness of elevated concerns regarding credit quality in the private credit industry but emphasized SLR's conservative approach to cash flow lending [6][7] - The company believes that ABL remains the most compelling risk-adjusted opportunity in private credit heading into 2026 [20] - Management highlighted the importance of rigorous underwriting practices in light of recent market scrutiny and failures in the asset-backed finance market [19] Other Important Information - SLR's investment portfolio had a fair market value of approximately $2.1 billion, with 109 portfolio companies across 31 industries [14] - The company has over $850 million of available capital to deploy, positioning it well for both stable and softening economic conditions [12] Q&A Session Summary Question: Did you mention that you had hired 100 new people over the past two years? - Yes, primarily in our asset-based and special lending strategies [39] Question: Is there something specific that you do to ensure 100% of your assets are qualified? - 100% are qualified assets, and we have not been limited in growing our special finance and asset-based lending strategies [41] Question: Can you dig into the asset-based lending churn? - The churn is often due to companies in transition, with asset-based structures typically having a two to three-year duration [42] Question: How do you adjust underwriting for depreciating equipment in equipment finance? - Extensions of existing leases are effectively profit to the bottom line for us, as we have already amortized out the equipment [43] Question: What do you think about the attractiveness of ABL going into 2026? - ABL is viewed as a manufacturing business requiring significant infrastructure, making it difficult for new entrants [45] Question: Is the dividend sustainable given the forward curve? - The last several quarters have seen fluctuations around the dividend, and adjustments will be made based on portfolio performance [47]